Commodities prices are set by investors buying and selling contracts for the delivery of raw materials now and in the future. When prices for a given commodity are lower for delivery today than they ...
When investors trade futures contracts for oil, iron and wheat, they’re helping to establish the market prices for these key commodities. Commodities prices can fluctuate dramatically over short ...
Investors in commodities funds that hold futures contracts will hear or read the words contango and backwardation. The terms are apt to confuse even those with some Wall Street experience, but ...
Backwardation occurs when the spot price is higher than the future price, or in other words, investors are willing to pay a premium to hold the commodity now. This causes a downward sloping futures ...
When the spread between futures and spot gets distorted, it suggests there is dislocation in the market. Read more here.
Crude oil's futures curve will likely switch to contango this summer from the current backwardation as global inventory is expected to build which would ease supply tightness, Bank of America energy ...
Now, what’s a futures contract? “A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future.” ...
Ether (ETH) bulls like a positive spread between its spot and ETH futures prices because the so-called contango reflects optimism about a higher rate in the future. But as of Aug. 1, the Ethereum ...
The prospect of a contango is casting a shadow over oil markets, with the entire 2026 WTI futures curve now trading below $60 per barrel—beneath breakeven levels for most new shale wells.
The CME bitcoin annualised basis has fallen to -2.35% its deepest backwardation since the extreme dislocations of the FTX collapse in November 2022, when the basis briefly approached -50%, according ...
Energy-heavy ETFs like GSG are top performers in the commodities market. The United States Commodity Index Fund, an energy-light commodity ETF, is also performing well. USCI is an optimized ETF that ...
Bitcoin has slipped into backwardation, a structure that occurs when futures trade below the spot price and is typically associated with stress, "extreme fear" or heavy hedging activity. The shift ...