Backwardation

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SeekingAlpha  Jul 28  Comment 
By Nathan Buehler: Contango and Backwardation Strategy Some of my frequent readers have commented on a strategy for volatility products using contango and backwardation as their targets. I wanted to test out this strategy and give you a visual of...
The Hindu Business Line  Jul 9  Comment 
If the Government had allowed futures in onion, then we could have been able to clearly see how backwardation and contango play out in a commodity market.Prices of a commodity are determined...
The Hindu Business Line  Feb 5  Comment 
We often hear these words that are directly related to the demand-supply situation in the commodities market. When the price of a commodity – which is to be delivered some three months fr...
FX Street  Jan 21  Comment 
A ForexTrading.TV Technical Analysis Video Alert for BRENT CRUDE For more information, read our latest forex news and reports.
TheStreet.com  Aug 12  Comment 
Updated from 1:24 p.m. ET with settlement prices. NEW YORK (TheStreet) -- Gold prices popped on Monday as backwardation in October to December prices boosted the appeal of the yellow metal. Gold for December delivery at the COMEX...
Resource Investor  Jul 24  Comment 
The term ‘backwardation’ has suddenly popped up in the mainstream financial media and is being touted as the signal that the price of gold is on its way back up. What does backwardation even mean?
Reuters  Jul 22  Comment 
* Strong WTI September/October backwardation draws investors     




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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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