Have you ever taken the physical delivery of a commodity-future?

Anyone here works in a firm who buys/hedges with futures, and received the physical delivery?

 

Miyagi wake up one day with 2000 bushels of corn on front lawn.

 

One day I was trading oil futures and forgot to close a position. Then a few weeks later I opened my door to find 4 barrels of oil.

 

Forgot to offset my long positions in coffee, cocoa and sugar, so I opened a Starbucks and ended up with a 1000% ROI on the trades.

 

Yes, with energy. I was the lead trader for the largest power utility in the USA.

I wanted them, and I took them all.

 

Normally you just get a warehouse receipt which you can sell so it is not that serious of a problem.

 

You should have then taken delivery of some live cattle and live hogs that can then eat the corn and fertilize your lawn.

 

I know a lot of people that take delivery.

If you trade retail its probably in your agreement somewhere that they are allowed to roll for you if you don't.

If you are a member or trading for/with a member then the exchange will start calling you if you don't roll. There is a cost/fee for taking delivery - it does not just "show up".

 

No but I once held past expiry and had to deliver some government bonds. Cost over 100 basis points per contract.