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.

A futures curve is in backwardation when the slope is declining, predicting the commodity price will be lower ‘n-months’ into the future. Conversely, a futures curve is in contango when the ...

A market is "in backwardation" when the futures price is below the spot price. This is illustrated with a downward sloping curve. Paying more today than in the future is generally rare.

Backwardation is a market condition in which ... When nearby supplies rise above demand, the forward curve tends to move into contango. When the demand outstrips supplies, backwardations occur.

This article examines 1) why backwardation occurs; 2) how a persistent backwardated market impacts hedging outcomes; 3) factors that are likely to flatten the curve in the future; 4) impacts to ...

Backwardation is incredibly uncommon in the VIX futures curve. Since 2005, there have only been four periods where the roll yield was wider than 1% - during the financial crisis, when the U.S ...

Furthermore, the whole VIX futures curve has been inverted and is in backwardation, indicating we’re in a fully fledged bear market, according to market experts. Dubbed the fear index ...

Morgan Stanley analysts have identified an unprecedented “smile” structure in Brent Crude’s (CO1:COM) forward curve, with backwardation in the first nine months and contango beyond ...

Something funny’s been happening with the crude oil price curve. It’s in what we call “backwardation,” meaning the price of oil in the future is lower than it is today. That’s not really ...

Creating backwardation in the curve structure now makes new hedging less useful for Mexico in future years. Whether specifically meant to target Mexico it will certainly make Mexico’s approach ...

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.