DEFINITION of 'Invisible Supply'

Physical stocks of a commodity that are available for delivery upon futures contracts, but whose quantities cannot be accurately identified.

BREAKING DOWN 'Invisible Supply'

The invisible supply of commodities underlying futures contracts can be found in the hands of different manufacturers, producers, and wholesalers. Because this lump of goods is located outside of conventional commercial channels, accurate accounting for the quantities available is difficult.

  1. Visible Supply

    The amount of a good that is currently being stored or transported. ...
  2. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  3. Approved Delivery Facility

    A facility authorized by an exchange to be used as a location ...
  4. Delivery Date

    The delivery date is the final date the underlying commodity ...
  5. Delivery Price

    The delivery price is the price at which one party agrees to ...
  6. Exchange of Futures for Cash

    A method by which opposite parties of a futures contract that ...
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