Hints and tips:
...Owing to near-term supply fears, price “backwardation” has appeared in the sugar, robusta coffee and soyabean markets, notes Jonathan Parkman at commodity broker Marex....
...that oil currently looked like a “heavily momentum-driven market”, with spot prices for oil moving significantly above those for delivery later in the year, a market phenomenon known in the industry as backwardation...
...Limited supply tightness in the region is also apparent from softer backwardation, where the spot or cash price is higher than the forward price, in the ICE gasoil futures curve....
...In technical jargon this type of curve is known as backwardation. The normal shape is a contango....
...Measures introduced in August that have protected suppliers include a decision to allow companies to recoup the cost of “backwardation” from October — shielding suppliers from significant mismatches in the...
...The bearish sentiment is visible in the oil market’s switch from backwardation — a market structure in which spot prices are higher than the price of contracts to deliver oil months in future — to its mirror...
...The curve has now flipped from backwardation to so-called contango — meaning futures prices through next summer are now higher than the spot price....
...A sharp drop starting next week would probably flip futures into backwardation (when spot prices are higher than futures contracts) again quickly, without any intervention from the cartel. 3....
...Some domestic oil producers have hesitated to increase production even with high US oil prices because of market volatility and steep “backwardation” in the futures market, in which the price of oil for...
...The changes introduced by the LME include a limit on backwardation of near-term spreads — whereby spot contracts trade at a premium to futures contracts, indicating that the market is undersupplied — and...
...From industrial metals to energy to agriculture, the rush for raw materials and food staples has been reflected in futures markets, where a large number of commodities have flipped into backwardation — a...
...Nine of the 23 futures contracts that make up the index are in backwardation, according to data from Refinitiv....
...That has left several key industrial commodities trading in backwardation — a market structure that indicates traders and consumers are prepared to pay large premiums for immediate supply of goods....
...This week backwardation on the copper contract reached $1,104 a tonne. The LME said it would also allow those with short positions in copper to delay delivery of metal....
...Tight supplies of everything from aluminium to oil to grains have sent commodity prices to record highs over the past year, while also pushing markets into backwardation — a pricing structure that signals...
...The first is that the first and second-month contracts remained in extreme backwardation; that is, the front-month contract is unusually high relative to the second month....
...It also said it would bring in a limit on backwardation — a scenario whereby spot contracts trade at a premium to futures contracts, indicating that the market is undersupplied....
...That has left several key industrial commodities trading in backwardation — a market structure that indicates traders and consumers are prepared to pay large premiums for the immediate supply of goods....
...Muncrief also wants to wait for Saudi Arabia and other Opec members to restore the oil supply they cut in 2020, and for the oil market’s backwardation structure — in which spot prices trade at a premium...
...Futures prices are in a state of what analysts call “super backwardation”, meaning that there is a near record high level gap between (high) short-term futures oil contracts and (lower) long-term contracts...
...At close to $10,000 per metric tonne, LME copper has been “in backwardation”, or short physical supply, for several months....
...from the weekend: From industrial metals to energy to agriculture, the rush for raw materials and food staples has been reflected in futures markets, where a large number of commodities have flipped into backwardation...
...If they descend, it is said to be in backwardation....
...When that happened, backwardation returned to the market unlocking all the previously stored-up commodities that had been funded by the contango structure....
...Bullish “longs” tend to make money when the market is in backwardation by doing essentially the opposite....
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