Suppose you are a trader in Future Market and deals in Exchange Trade Commodity. Now due to uncertainty in market, demand for that good fell and there will be physical delivery of that good once the trading window is closed. With “constrained storage capacity” and few days for the trading window to close, what will you do as a trader? Will you trade those futures at any price (+ve or -ve) possible or Will you take the delivery and store it where the cost of storage is higher than the gains from future contract? INTRODUCTION : US benchmark West Texas Intermediate (WTI) for May delivery traded with $-4.29 on 20 th April and ended trading at -$37.63 a barrel on NYMEX ahead of 21st April close (lost 306% to settle) for futures contracts and expired at $10.01 a barrel, although Brent Crude and other benchmarks were in positive radar. U.S. oil’s June contract drops over 43% to 21year low. Overall, the energy sector is forecasted by Global Data ...