Contango and backwardation are terms used in commodity futures markets. Learn more about futures trading and what these terms mean for hedgers and speculators. ... For example, using your crystal ...

Backwardation vs. Contango If prices are higher with each successive maturity date in the futures market, it's described as an upward sloping forward curve. This upward slope—known as contango ...

Contango refers to when a commodity futures price is above the spot price. For example, let’s say that the spot price of Brent Crude Oil today is $70 per barrel. If you buy a futures contract that ...

Conversely, if backwardation occurs we will earn approximately the difference between the two prices. If we are short, the opposite effect will occur: in contango we will gain approximately the ...

In this example, the price of crude oil for delivery in June 2020 was at $28.82 per barrel and was at $36.10 per barrel for delivery one year later in June 2021. The contango in the oil market ...

Contango and backwardation are two technical indicators that act ... For example, although backwardation indicates that prices are likely to decline in the future based on the gap between the ...

Without the 5% outliers, the regression r-squared falls from 18% to 3% and the fitted line gets pretty flat with a lot of variability on both the contango and backwardation sides. For example ...

The crude oil market regularly – well, maybe irregularly – flips from contango to backwardation, and back again, depending upon market participants' perception of supply and demand. Crude's ...

Contango and normal backwardation refer to the pattern of prices over time, specifically if the price of the contract is rising or falling. In 1993, the German company Metallgesellschaft famously ...