Futures cannot be delivered in kind.

Physical delivery of futures refers to the process that when a futures contract expires, both parties to the transaction settle the expired open contract by transferring the ownership of the goods contained in the futures contract.

Commodity futures trading generally adopts the physical delivery system. Although the proportion of final physical delivery of futures contracts is very small, it is this very small amount of physical delivery that connects the futures market with the spot market and provides an important prerequisite for the function of the futures market.