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).

RELATED TERMS
  1. Current Delivery

    A type of futures contract that requires the delivery of the ...
  2. Contract Month

    The month in which a futures contract expires. The contract can ...
  3. Split Close

    A situation that refers to price differences within a series ...
  4. Delivery Price

    The delivery price is the price at which one party agrees to ...
  5. Contract Unit

    A Contract Unit is the actual amount of the underlying asset ...
  6. Delivery Month

    A key characteristic of a futures contract that designates when ...
Related Articles
  1. Investing

    Introduction To Currency Futures

    The forex market is not the only way for investors and traders to participate in foreign exchange.
  2. Investing

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  3. Investing

    Analyzing The 5 Most Liquid Commodity Futures (WTI, ZC)

    Crude oil leads the pack as the most liquid commodity futures market, followed by corn and natural gas.
  4. Trading

    Why Forward Contracts Are The Foundation Of All Derivatives

    This article expands on the complex structure of derivatives by explaining how an investor can assess interest rate parity and implement covered interest arbitrage by using a currency forward ...
RELATED FAQS
  1. 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 >>
  2. Why do futures' prices converge upon spot prices during the delivery month?

    Learn why as the delivery month of a futures contract approaches, the future's price will generally inch toward or even come ... Read Answer >>
  3. How are futures used to hedge a position?

    Learn how futures contracts can be used to limit risk exposure. Read Answer >>
  4. Forward Contracts vs. Futures Contracts

    While both forward and futures contracts allow people to buy or sell a specific asset at a specific time at a given price, ... Read Answer >>
Hot Definitions
  1. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going ...
  2. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  3. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  4. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  6. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
Trading Center