First of all, it is very convenient to buy soybeans in the spot market and close positions in futures soybeans;

Secondly, if delivery is to be carried out, the company must be qualified for delivery. This time, the company is engaged in buying and hedging, and is worried about the risk of rising raw material prices. If the company goes to deliver at maturity, the delivery warehouse cannot be decided by the company, but by Dalian Commodity Exchange. If this is For an oil factory in the north, the Dalian Commodity Exchange allocates the delivery warehouse to the south. The company must send a truck to pull the goods. If it does not pull the goods, it will compensate a considerable part of the liquidated damages; if it does, the long-distance freight and labor will be involved. Fees, time costs, etc. add up to a lot of expenses, which is far less appropriate than doing both ends of the current period.

Of course, if you can be sure that the goods will be delivered nearby, you can proceed with delivery.