
Futures processing 73
areas of production, thus assisting traders and industry in meeting
their last resort delivery requirements as readily as possible.
In common with many financial futures only a relatively small per-
centage of LME contracts actually result in delivery, as the vast major-
ity of contracts prove to be hedging contracts bought or sold back
before falling due for settlement. As a result, the deliveries that do take
place, either in or out of warehouse, will reflect the physical market
demand and supply, and the information included in the LME’s daily
stock reports can play a major part in the market’s assessment ...