1. The opposite market condition to normal backwardation is known as contango. 2. Backwardation very seldom arises in money commodities like gold or silver.3. There may be few such parties if short-term demand exceeds supply, leading to backwardation . 4. When the spot price is higher than the futures price, the market is said to be in backwardation . 5. Soft commodities have been known to adopt a backwardation trend until the late 1990s when futures were actively traded. 6. It is argued that backwardation is abnormal, and suggests supply insufficiencies in the corresponding ( physical ) spot market. 7. It is common for copper prices to be in backwardation -- that is, when spot prices exceed forward prices. 8. The additional supplies could shrink the backwardation in crude prices, reducing the premium for prompt crude compared with forward deliveries. 9. Nevertheless, the so-called backwardation isn't the reason inventories fell in the first place, they said. 10. With backwardation , prices for a commodity such as crude oil are lower in future months than they are at present.
Mobile