Yes, generally, the exchange automatically distributes the goods. The seller changes the goods into standard warehouse receipts, and then the buyer takes the money and both parties go to the exchange for delivery. But now the exchange seems to provide the matching numbers of buyers and sellers by itself, and then submit an application to the exchange for mutual delivery.

Take Lme as an example. LME has its own physical delivery warehouse, but this is only a small part. Most of them are based on LME prices and offline transactions between buyers and local suppliers. Futures can be delivered in kind or not, depending on the investors themselves. Ordinary investors will not deliver physical objects, because ordinary investors have no demand for physical objects. When there is oversupply and insufficient demand in the market, the monthly contract price for delivery in recent months often falls more than the long-term decline, or the increase of the contract price in recent months is less than the long-term increase. Whether in the forward market or the domestic market, in this case, it is more likely to sell the near-month contract and buy the forward-month contract for arbitrage. We call this arbitrage "bear market arbitrage".