Visible Supply


DEFINITION of 'Visible Supply'

The amount of a good that is currently being stored or transported. The visible supply is the amount of goods or commodities that are available to be bought or sold. This supply is important as it identifies a definite quantity of good available for purchase or delivery upon futures contracts.

BREAKING DOWN 'Visible Supply'

The price of a good is not completely influenced by the amount of visible supply. Because commodities, such as wheat, are often purchased through futures contracts long before delivery, prices are more likely to be influenced by future supply rather than what is available at that moment. In general, an increase in visible supply is considered to be a bearish signal, while a decrease is considered a bullish one.

  1. Commodity

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  2. Invisible Supply

    Physical stocks of a commodity that are available for delivery ...
  3. Certificated Stock

    The stock of a commodity that has been inspected by qualified ...
  4. In Sight

    A term describing deliverable grades of commodities underlying ...
  5. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
  6. On Track

    1. A type of commodities delivery for futures contracts that ...
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  1. Who sets the price of commodities?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities ... Read Full Answer >>
  2. Do hedge funds invest in commodities?

    There are several hedge funds that invest in commodities. Many hedge funds have broad macroeconomic strategies and invest ... Read Full Answer >>
  3. Can mutual funds invest in options and futures?

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
  4. How do futures contracts roll over?

    Traders roll over futures contracts to switch from the front month contract that is close to expiration to another contract ... Read Full Answer >>
  5. Why do companies enter into futures contracts?

    Different types of companies may enter into futures contracts for different purposes. The most common reason is to hedge ... Read Full Answer >>
  6. What does a futures contract cost?

    The value of a futures contract is derived from the cash value of the underlying asset. While a futures contract may have ... Read Full Answer >>

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