What does Invisible Supply mean?
In futures markets, the term ‘Invisible Supply’ refers to the commodities underlying a futures contract that are available for delivery but whose quantity is unknown and outside of conventional commercial channels.
Futures Knowledge Explains Invisible Supply
This includes uncounted stocks of the commodity available with wholesalers, manufacturers, and producers that cannot be identified accurately. The quantity of the invisible supply is difficult to determine because it is held by many persons or firms spread over a large geographical area. Though these stocks are outside commercial channels and carries the uncertainty over estimated quantity of the invisible supply, but their physical stocks are considered available for delivery upon futures contracts.