Sep 25, 2025 · Backwardation occurs when the current price of an asset is higher than its futures prices. This phenomenon often signals high demand for a commodity now compared to the …

Normal backwardation, also sometimes called backwardation, is the market condition where the price of a commodity's forward or futures contract is trading below the expected spot price at …

Nov 25, 2025 · When this curve slopes upward, it's in a state called contango; when it slopes downward, it's called backwardation. Contango and backwardation reflect shifts in supply, …

Backwardation arises when the present spot price of a commodity surpasses its future price. This uncommon and fleeting phenomenon can occur due to sudden demand spikes or unforeseen …

Jan 12, 2024 · Contango and backwardation are trailing indicators that give you a snapshot of what is currently happening without offering a clear view of what will happen in the future.

Contango and backwardation are terms used to define the structure of the forward curve. When a market is in contango, the forward price of a futures contract is higher than the spot price. …

Backwardation is a term used to describe the structure of prices in the market across the time horizon, and is most often associated with commodities and futures markets. In …

Nov 13, 2025 · Backwardation occurs when the spot price is higher than the futures price, showing that immediate delivery has more value than future delivery. It reflects supply and …

Mar 28, 2024 · Backwardation is a term commonly used in financial markets, particularly in commodities and futures trading. It refers to a situation where the current market price, also …

Backwardation is a market condition where the current price (spot price) of an asset is higher than the price of its futures contracts. In simple terms, it means that investors are willing to pay …