Hints and tips:
Related Topics
...The normal shape is a contango. Uncertainty around weather, especially the effects of El Niño’s return, will cause further volatility in soft commodity markets....
...Aluminium prices this month experienced their largest contango since the financial crisis, meaning metal bought today is at a discount to future prices....
...Higher interest rates have made banks cautious about holding surplus supply of metal because of expensive financing costs, contributing to the dramatic “super-contango” structure where metal prices for immediate...
...In such surplus “contango” markets, the SRR could engage in a timespread contract by which it would in effect acquire the commodity at depressed spot prices, only to reverse the transaction at a later date...
...Contango is a reliable signal of bearish sentiment....
...Nickel for delivery in three months was $293 more expensive on the LME than the spot price at Monday’s close, marking the biggest contango — where the futures price is higher than the spot price — for the...
...The WTI futures curve also switched into mild contango — a market structure in which the forward price of a contract is more expensive than the spot price, and which reflects perceptions of oversupply....
...Contango can take on its own bearish momentum, so Opec+ will wish to fix it soon. First, though, it makes sense to watch what happens with Russian supply....
...But the market is now in a situation known in the industry as “contango”, in which prices for delivery in the future are trading higher than for immediate delivery....
...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 opposite, contango...
...The curve has now flipped from backwardation to so-called contango — meaning futures prices through next summer are now higher than the spot price....
...Crucially, the first few months of the US crude price curve has flipped into contango — as spot prices have slipped below futures prices several months out — an important signal of price weakness and near-term...
...“When we filed we thought that it would be worth it, but costs built on costs — the contango, the commission merchants, added costs to work through a Cayman subsidiary — so that we ultimately decided it...
...A “super contango” in the oil market last year was sparked by a price war between Saudi Arabia and Russia, and was exacerbated by pandemic lockdown conditions....
...The bitcoin futures market typically, though not always, trades with a modestly upward sloping curve, known as contango....
...“This is particularly important when the futures market is in contango — [a phenomenon that] occurs when the price of carbon allowances are expected to rise....
...If the market expects the price of bitcoin to rise over the longer term, then the price of longer term futures contracts will rise above the short-term contracts, in what is known as contango....
...power problem -- Trevor Milton’s ill-gotten-gaff is up for vacation rental -- A guide to the Post-Keynesian worldview -- Pandemic and inflation: the Biden line -- Small funds can work -- The Bitcoin contango...
...(For more on how contango trades work, see here.) How a bitcoin contango trade (and you can bet your bottom cryptodollar there will be hedge funds already doing so) works in theory is simple....
...Braemar saw rates on tankers go up to $300,000 (£212,696) a day when the “contango” (when the spot price is lower than the forward price) hit following the oil price crash in April 2020....
...The real test of the kingdom’s power is whether it can jolt the market out of the structural contango that has been a killer for the longs and a bonanza for the shorts in recent years....
...Both backwardation and its opposite, contango, are descriptions of the structure of commodity futures curves....
...The bigger issue is the steepness in the oil contango, leading to elevated CMA roll adjustments....
...“If you had been here in 2008-09 you knew what to do because it was the same structure,” said Mr Hardy, referring to the oil market “contango” — when longer-dated futures prices trade at higher levels than...
...Spot market prices for oil fell so much in February that they briefly became cheaper than contracts for delivery in six months’ time, a phenomenon known as “contango” that usually indicates a heavily oversupplied...
International Edition