Backwardation

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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.
SeekingAlpha  Aug 26  Comment 
By Prudent Finances: By Ivan Y. In one of my first articles on Seeking Alpha, I suggested that U.S. Oil Fund (NYSEARCA:USO) was a sucker's bet due to contango in WTI crude oil. Contango is when the near-month contracts for WTI oil are cheaper...
Reuters  Aug 18  Comment 
* WTI backwardation widens on Coffeyville restart expectations (Updates prices to settlement)
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...




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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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