Contango

RECENT NEWS
Mondo Visione  Apr 7  Comment 
Contango, the specialist derivatives consultancy, is delighted to announce a key addition to its burgeoning team of industry specialists with the arrival of Kevin Green, most recently, executive director at Santander as Director, Sales and Account...
SeekingAlpha  Mar 27  Comment 
VXX hasn’t hit a new low in 6 weeks , and it’s not because the market is crashing. What has changed is the shape of the VIX futures term structure—the underlying futures that the various volatility Exchange Traded Products (ETP) like...
DailyFinance  Mar 4  Comment 
Contango Oil & Gas Company (NYSE MKT: MCF) (“Contango”) announced today its financial results for the three and six months ended December 31, 2013. Fourth Quarter 2013 Highlights Consummation of the merger with...
SeekingAlpha  Feb 9  Comment 
ByRobert Wagner: I recently wrote an article about the VIX index and associated ETFs. When I started writing the article I had high hopes, but as my research progressed I realized that there are serious problems with the VIX ETFs, they simply...
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...
SeekingAlpha  Dec 24  Comment 
By Alpha Gen Capital: Contango Oil and Gas (MCF) is an independent oil and gas exploration company based in Texas that has the core belief that the only competitive advantage in the commodity-based natural gas and oil business is to be among the...
DailyFinance  Dec 7  Comment 
Contango ORE, Inc. (CTGO.PK) announced today that the following directors were elected at the annual meeting of stockholders held on December 3, 2013:    Brad Juneau Joseph S. Compofelice ...
OilVoice  Nov 12  Comment 
Contango Oil Gas Company NYSE MKT MCF ldquoContangordquo announced today its quarterly results for the quarter ended September 30 2013 and quarterly results for Crimson Exploration Inc.
Reuters  Nov 5  Comment 
(Corrects Monday's report to seventh, not sixth, straight build in U.S. crude stockpiles in paragraph 9)     




 

This article refers to a futures concept. For the oil & gas company, see Contango Oil & Gas Company (MCF).

Contango means the price of a commodity for delivery at a future date is significantly higher than the current or "spot" price, which makes it profitable for companies to store the commodity and enter into contracts to sell futures contracts on the commodity, even after accounting for storage costs and opportunity cost of capital (i.e. money tied down on the inventory not earning a return).

The situation persists untill the futures prices come down or current prices go up or the cost of storage becomes very high.

This situation is also referred to as an upward sloping forward curve.

The opposing market condition to contango is backwardation.

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