RECENT NEWS  Dec 1  Comment 
NEW YORK (Kitco News) -- Former Congressman (R-TX) and three-time U.S. presidential candidate Ron Paul says the current market situation is acting 'strange.' The market condition Paul references is called backwardation and it occurs when the spot...
Disciplined Approach to Investing  Aug 22  Comment 
With Friday's market sell off, the VIX curve went into steep backwardation at 4.56. VIX backwardation refers to the situation when the near-term VIX futures are more expensive than longer-term 3-month VIX futures (VXV). This is an indication...
Financial Times  Feb 12  Comment 
‘Backwardation’ a sign of widening variances in raw material markets
SeekingAlpha  Oct 14  Comment 
By Richard Zeits: The recent decline in crude oil price has been one of the key drivers behind the quite dramatic stock declines in the Oil & Gas sector. The significance of oil price moves goes beyond just the Energy stocks. The direction of oil...
SeekingAlpha  Sep 30  Comment 
By Nathan Buehler: Contango and Backwardation strategy for ProShares Ultra VIX Short-Term Futures ETF (NYSEARCA:UVXY) This is an update to the contango and backwardation strategy I published on 7/28/2014 - you may view those articles here: ...
Commodity Online  Sep 4  Comment 
It pointed out that tension has been a feature of the copper market since the middle of last year but, so far, the net result has generally been stalemate and prices have moved sideways, mostly in the US$6,900-7,150/t range.


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Backwardation means the price of a commodity for delivery at a future date is significantly lower than the current or "spot" price. This is an unusual condition, as a rational buyer will usually refuse to pay a higher price today if he is guaranteed a lower price tomorrow.

When it occurs, backwardation is usually the result of shortages.

The opposite of backwardation is Contango

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