DEFINITION of 'Spot Delivery Month'

The nearest month when a futures contract matures. The spot delivery month is the month that a futures contract on a commodity becomes deliverable. For example, when the March futures contract for corn expires, the new spot delivery month would be May (the next contract).

BREAKING DOWN 'Spot Delivery Month'

The various futures contracts have different contract months. Corn and wheat futures, for example, have contract months of March (H), May (K), July (N), September (U) and December (Z). Soybean futures, on the other hand, have contract months of January (F), March (H), May (K), July (N), August (Q), September (U) and November (X).

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RELATED FAQS
  1. Why do futures' prices converge upon spot prices during the delivery month?

    It's a fairly safe bet that as the delivery month of a futures contract approaches, the future's price will generally inch ... Read Answer >>
  2. How can I calculate the notional value of a futures contract?

    Learn how the notional value of a futures contract is calculated, and how futures are different from stock since they have ... Read Answer >>
  3. How do I learn technical skills for trading commodities?

    Learn what resources are available to learn about trading commodities, and understand some of the differences between stocks ... Read Answer >>
  4. What are some securities that have spot rates?

    Learn about the types of assets that have spot rates, and understand how the spot rate is used to determine the fair market ... Read Answer >>
  5. What is the difference between forward and futures contracts?

    Fundamentally, forward and futures contracts have the same function: both types of contracts allow people to buy or sell ... Read Answer >>
  6. How do futures contracts roll over?

    Learn about why futures contracts are often rolled over into forward month contracts prior to expiration, and understand ... Read Answer >>
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