west central MN | IH4186 - 9/2/2020 11:04 What would have happened if someone wanted to really mess with the market and tried to take delivery of a few thousand contracts?
In that position it would have forced the guys with the offsetting short position to bid up until they where able to buy their way out of the contract. It was just the opposite that happened when crude oil went negative. There was someone that wanted to deliver the actual crude and they put a squeeze on the guys that where long. Eventually I am guessing the guys that where short just took their profit from the short position and went on to contract that crude in one of the next trading months. That is why you never want to still be in the market on the first day of delivery. If you are long you could get delivered on and then you would have a lot of fees and a crop that you would have to do something with. There are companies that do want the physical and that is why there are some deliveries most months. |
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