So, normal backwardation is when the futures prices are increasing. Consider a futures contract we purchase today, due in exactly one year. Assume the expected future spot price is $60 ...

The shape of the futures curve is important to commodity hedgers and speculators. Both care about whether commodity futures markets are contango markets or normal backwardation markets. This isn't ...

This notion that backwardation (that is, when distant deliveries trade at a discount to nearby deliveries, see "The Battle Against Contango") is somehow "normal" for a storable commodity is, to ...

Normal backwardation occurs when the price of a futures contract is lower than the anticipated spot price of the underlying asset at the contract's maturity date. For Keynes, ...

Normal Backwardation Foiled Going Forward. Sep. 17, 2013 11:53 AM ET CRUD, USO 1 Comment. Christopher Holt. 222 Followers. Follow. According to a forthcoming paper in the Journal of International ...

Contango and backwardation are two essential terms in a commodity trader’s vocabulary. ... A “positive carry” or “normal” market is synonymous with contango. Source: NYMEX/RMB.

Contango and backwardation are two essential terms in a commodity trader’s vocabulary. ... A “positive carry” or “normal” market is synonymous with contango. Source: NYMEX/RMB.

That means, if and when ‘normal backwardation’ hits the money markets, the natural reflection of the commodity curve would be what you might call an ‘abnormal backwardation’ — because ...

Commodities Analysis by AllAboutAlpha covering: Crude Oil WTI Futures. Read AllAboutAlpha 's latest article on Investing.com ...

Oil markets are in “backwardation” — we’ll explain. Geopolitical conflict is interfering with crude oil futures, causing oil prices to be lower in the future than they are today.

Fekete, however, believes episodes of backwardation tend to be fleeting in many commodity markets (unless there are serious structural shortages that cannot be overcome) and contango is the normal ...

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 ...