Delivery Date

While commodities trading may be highly leveraged speculation excitement for those in the futures or forwards market, it's important to remember that, ultimately, commodities trading is a physical market, and that actual commodity products that underscore those futures contracts are subject to physical delivery. As many commodities are agricultural in nature, they may be subject to environmental and weather cycles that dictate sowing and reaping schedules.

The Delivery Date is the date by which the actual contract holder must have the contract in their possession if holding it to maturity and subsequent delivery. In general, trading stops a couple of days before the last date for delivery. Futures contracts, traded on an exchange, often will be closed out with an opposing contract which nullifies the open position, as much of futures trading is speculation.

In the case of forward contracts, physical delivery is often a reality, as they are traded in an over-the-counter market by actual producers and buyers as a pricing hedge.

And no, this has nothing to do with whatever the OB/GYN just told you.