CONTANGO AND BACKWARDATION PDF



Contango And Backwardation Pdf

Ultimate Guide To Contango And Backwardation Option Pricing. To see why backwardation and contango are important, look at the chart below, showing the spread between the current near month crude oil contract and the one that is 11 months out. Right now, oil futures are in an extreme condition of contango which implies that oil prices are oversold and bottoming., Who We Are. Contango Oil & Gas Company is a Houston, Texas based, independent energy company whose business is to maximize production from its shallow offshore Gulf of Mexico properties and onshore properties in Texas and Oklahoma, and to use that cash flow to explore, develop, exploit, produce and acquire crude oil and natural gas properties across the United ….

WTI Crude Oil Backwardation? No Back to Contango

(PDF) Determinants of backwardation in oil futures. Who We Are. Contango Oil & Gas Company is a Houston, Texas based, independent energy company whose business is to maximize production from its shallow offshore Gulf of Mexico properties and onshore properties in Texas and Oklahoma, and to use that cash flow to explore, develop, exploit, produce and acquire crude oil and natural gas properties across the United …, Jan 31, 2013 · “Contango vs. normal backwardation” (below) illustrates the relationship between the expected future spot price (shown in yellow), a market that is in contango (in red) and a market that is in.

Contango and Backwardation as Predictors of Commodity Price Direction Abstract: This study examines whether term structure can be used as a predictor of commodity price direction. It uses daily prices for the S&P GSCI and each of the 24 underlying commodities from January 2007 through December 2013. During each day of the monthly roll PDF The authors investigate contango and backwardation formations and seasonality traits in Malaysia over 22 years spanning 1995 to 2017. contango …

Feb 22, 2014 · BACKWARDATION The opposite market condition to Contango is known as normal backwardation. A market is "in backwardation" when the futures price is below the expected future spot price for a particular commodity. This is favourable for investors who have long positions since they want the futures price to rise. The contango contract for future delivery, selling today, is at a price premium relative to buying the commodity today and taking delivery. The backwardation contract selling today is lower than the spot price, and its trajectory will take it upward to the spot price when the contract closes.

May 24, 2017 · "Backwardation is the solution" to OPEC's problem of how to raise output and revenues without sparking another shale boom, according to the influential oil research team at Goldman Sachs. Feb 26, 2014 · Contango and backwardation 1. Tired by searching meaning of contango and backwardation over the internet? 2. Confused in understanding concept of contango and backwardation by referring innumerable websites over the web? But the question still remains, How to understand contango and backwardation in simple language 3. Don’t worry!

Jan 31, 2013 · “Contango vs. normal backwardation” (below) illustrates the relationship between the expected future spot price (shown in yellow), a market that is in contango (in red) and a market that is in Contango, Backwardation, and VXX. There seems to be a widespread need for a definition of contango. I figure that about 99% of investors have no idea of what contango or backwardation are. That’s a shame, because they are important concepts which can be precisely measured and they strongly influence whether certain investment instruments will

Dec 31, 2018 · The Cost of Contango—It’s Not the Daily Roll. December 31, Now just to summarize my understanding of the article’s concept: regardless of M1/M2 relation (backwardation or contango) only the value of VIX spot relative to values of M1 and M2 matters. When the spot is higher than the futures then (generally) it’s a backwind for long Jul 14, 2014 · What is contango and backwardation? Nathan Buehler. Loading... Unsubscribe from Nathan Buehler? How To Convert pdf to word without software - Duration: 9:04.

Jul 23, 2012 · CONTANGO WATCH: Natural gas remained in backwardation for a third week amid scorching summer temperatures across the United States. For the next month or two, roll costs should not be a major Contango and normal backwardation refer to the pattern of prices over time, specifically if the price of the contract is rising or falling.

Feb 16, 2014 · please guys kindly help me out!! i understand collateral and spot/price return components of commodity returns. i however have difficulty catching the aspect of roll return where the curriculum says roll return should be positive in backwardation and negative in contango. why?what is the reasoning behind this please? thanks in advance guys.. Mar 25, 2016 · If you've read an article lately about a commodity market being in contango and thought it related to Latin dancing, you wouldn't be the first, and you certainly won't be the last. While the term

Jan 31, 2013 · “Contango vs. normal backwardation” (below) illustrates the relationship between the expected future spot price (shown in yellow), a market that is in contango (in red) and a market that is in The theory of storage and the convenience yield. 2008 Summer School - UBC 2 The theory of storage • Contango Spot price < Futures price Section 2. The analysis of contango and backwardation Section 3. The convenience yield Section 4. Empirical tests of the storage theory Section 5. Critiques of the theory. 2008 Summer School - UBC 6

Contango by FuturesTradingpedia.com

contango and backwardation pdf

Forward Curve Backwardation and Contango in Oil & Gas Market. The theory of storage and the convenience yield. 2008 Summer School - UBC 2 The theory of storage • Contango Spot price < Futures price Section 2. The analysis of contango and backwardation Section 3. The convenience yield Section 4. Empirical tests of the storage theory Section 5. Critiques of the theory. 2008 Summer School - UBC 6, The theory of storage and the convenience yield. 2008 Summer School - UBC 2 The theory of storage • Contango Spot price < Futures price Section 2. The analysis of contango and backwardation Section 3. The convenience yield Section 4. Empirical tests of the storage theory Section 5. Critiques of the theory. 2008 Summer School - UBC 6.

Basis Contango and Backwardation. Feb 28, 2019 · Abstract. The authors investigate contango and backwardation formations and seasonality traits in Malaysia over 22 years spanning 1995 to 2017. Employing graphical observations and statistical tests, contango and backwardation traits appear through market expectations, seasonality, cost of carry model predictions, and index volatility., Jul 23, 2012 · CONTANGO WATCH: Natural gas remained in backwardation for a third week amid scorching summer temperatures across the United States. For the next month or two, roll costs should not be a major.

Contango and backwardation SlideShare

contango and backwardation pdf

Why is the VIX futures market usually in a state of contango?. Who We Are. Contango Oil & Gas Company is a Houston, Texas based, independent energy company whose business is to maximize production from its shallow offshore Gulf of Mexico properties and onshore properties in Texas and Oklahoma, and to use that cash flow to explore, develop, exploit, produce and acquire crude oil and natural gas properties across the United … https://uk.wikipedia.org/wiki/%D0%9A%D0%BE%D0%BD%D1%82%D0%B0%D0%BD%D0%B3%D0%BE Mar 12, 2017 · Contango is back. We will now analyse contango and backwardation, the price patterns in the oil futures market. Contango and backwardation provide a valuable insight for the market expected trend and OPEC closely looks at the futures term-structure to assess the effectiveness of its plans..

contango and backwardation pdf


The crude oil market is complex due to the big variety of instruments and dependencies among them. Utilize a forward curve from the oil professionals so you can analyse changes in the market structure, i.e. backwardation or contango. Contango and normal backwardation refer to the pattern of prices over time, specifically if the price of the contract is rising or falling.

Contango and Backwardation Contango and backwardation are terms that describe the relationship between the prices of commodity futures contracts with different delivery dates. Commodity futures contracts are exchange-traded contracts that offer price exposure to commodities across different periods, depending on the delivery months. Feb 22, 2014 · BACKWARDATION The opposite market condition to Contango is known as normal backwardation. A market is "in backwardation" when the futures price is below the expected future spot price for a particular commodity. This is favourable for investors who have long positions since they want the futures price to rise.

The theory of storage and the convenience yield. 2008 Summer School - UBC 2 The theory of storage • Contango Spot price < Futures price Section 2. The analysis of contango and backwardation Section 3. The convenience yield Section 4. Empirical tests of the storage theory Section 5. Critiques of the theory. 2008 Summer School - UBC 6 Backwardation vs Contango. Is this English in the first place? I am sure it must sound crazy but don't you worry, we will make you understand all about it.

Contango and normal backwardation refer to the pattern of prices over time, specifically if the price of the contract is rising or falling. CONTANGO ASSET MANAGEMENT LIMITED. Contango Asset Management Limited (ASX:CGA) is a financial services company with a marketing and distribution platform that partners with, and promotes, high quality fund managers to the self-directed and Independent Financial Adviser (IFA) channels of the $2 trillion superannuation industry.

Feb 28, 2019 · Abstract. The authors investigate contango and backwardation formations and seasonality traits in Malaysia over 22 years spanning 1995 to 2017. Employing graphical observations and statistical tests, contango and backwardation traits appear through market expectations, seasonality, cost of carry model predictions, and index volatility. Mar 24, 2014 · 7 Commodities in Contango and Backwardation. March 24, 2014 Attain Capital 1 Comment Like. Education, Managed Futures, Markets. One of the more unique aspects of futures contracts compared to other investment styles, is that there are fixed term contracts which expire at specific dates, and many different ‘contract months’ for each

Feb 26, 2014 · Contango and backwardation 1. Tired by searching meaning of contango and backwardation over the internet? 2. Confused in understanding concept of contango and backwardation by referring innumerable websites over the web? But the question still remains, How to understand contango and backwardation in simple language 3. Don’t worry! The crude oil market is complex due to the big variety of instruments and dependencies among them. Utilize a forward curve from the oil professionals so you can analyse changes in the market structure, i.e. backwardation or contango.

Jun 07, 2012 · A contango market is often confused with a normal futures curve; and a normal backwardation market is confused with an inverted futures curve. Let's start by getting an understanding of the Feb 28, 2019 · Abstract. The authors investigate contango and backwardation formations and seasonality traits in Malaysia over 22 years spanning 1995 to 2017. Employing graphical observations and statistical tests, contango and backwardation traits appear through market expectations, seasonality, cost of carry model predictions, and index volatility.

contango and backwardation pdf

Contango, Backwardation, and VXX. There seems to be a widespread need for a definition of contango. I figure that about 99% of investors have no idea of what contango or backwardation are. That’s a shame, because they are important concepts which can be precisely measured and they strongly influence whether certain investment instruments will WTI Crude Oil: Backwardation? No, Back to Contango On March 8, 2017 crude oil plummeted more than 5%, with WTI price falling through $50 a barrel for the first time since December. The sudden move was triggered by EIA reporting a massive build-up in American crude oil inventories, hitting record levels according to data going back to 1982.

roll yield in period of contango/backwardation

contango and backwardation pdf

Contango and Backwardation Peterson. Voiceover: Let's do a quick review of contango and backwardation because they really are opposites of each other, but they're used in different context, sometimes with the exact right meaning, sometimes with the not so right meaning, so …, Feb 16, 2014 · please guys kindly help me out!! i understand collateral and spot/price return components of commodity returns. i however have difficulty catching the aspect of roll return where the curriculum says roll return should be positive in backwardation and negative in contango. why?what is the reasoning behind this please? thanks in advance guys...

Backwardation and Contango Technical Analysis Learning

Normal backwardation Wikipedia. Mar 25, 2016 · If you've read an article lately about a commodity market being in contango and thought it related to Latin dancing, you wouldn't be the first, and you certainly won't be the last. While the term, Contango, Backwardation, and VXX. There seems to be a widespread need for a definition of contango. I figure that about 99% of investors have no idea of what contango or backwardation are. That’s a shame, because they are important concepts which can be precisely measured and they strongly influence whether certain investment instruments will.

Mar 25, 2016 · If you've read an article lately about a commodity market being in contango and thought it related to Latin dancing, you wouldn't be the first, and you certainly won't be the last. While the term Mar 12, 2017 · Contango is back. We will now analyse contango and backwardation, the price patterns in the oil futures market. Contango and backwardation provide a valuable insight for the market expected trend and OPEC closely looks at the futures term-structure to assess the effectiveness of its plans.

Voiceover: Let's do a quick review of contango and backwardation because they really are opposites of each other, but they're used in different context, sometimes with the exact right meaning, sometimes with the not so right meaning, so … Apr 03, 2017 · These terms, contango and normal backwardation, refer to the pattern of future prices over time. Contango is a situation where the futures price of a commodity is higher than the expected future spot price (supply driven). The opposite of a contango is when a futures market is in normal backwardation.

Why is the VIX futures market usually in a state of contango? Ask Question Asked 5 years, 4 months ago. It seems like the VIX futures market should be in a state of contango about as frequently as it is in a state of backwardation. What causes contango in the VIX futures market, and why is it the usual state of the market? $\begingroup Basis, Contango, and Backwardation . Lecture 5 covers the concepts of basis, contango, and backwardation. This handout helps disentangle the relationship between an increase or decrease in the basis when the market is in contango verses backwardation. Definitions . Basis: The difference between the spot price and the futures price at a given

PDF The authors investigate contango and backwardation formations and seasonality traits in Malaysia over 22 years spanning 1995 to 2017. contango … WTI Crude Oil: Backwardation? No, Back to Contango On March 8, 2017 crude oil plummeted more than 5%, with WTI price falling through $50 a barrel for the first time since December. The sudden move was triggered by EIA reporting a massive build-up in American crude oil inventories, hitting record levels according to data going back to 1982.

Jan 31, 2013 · “Contango vs. normal backwardation” (below) illustrates the relationship between the expected future spot price (shown in yellow), a market that is in contango (in red) and a market that is in Mar 24, 2014 · 7 Commodities in Contango and Backwardation. March 24, 2014 Attain Capital 1 Comment Like. Education, Managed Futures, Markets. One of the more unique aspects of futures contracts compared to other investment styles, is that there are fixed term contracts which expire at specific dates, and many different ‘contract months’ for each

May 24, 2017 · "Backwardation is the solution" to OPEC's problem of how to raise output and revenues without sparking another shale boom, according to the influential oil research team at Goldman Sachs. inventory is associated with forward curves in backwardation (contango), as the theor y of storage predicts, and that price volatility is a d ecreasing function of crude oil

Contango and Backwardation Contango and backwardation are terms that describe the relationship between the prices of commodity futures contracts with different delivery dates. Commodity futures contracts are exchange-traded contracts that offer price exposure to commodities across different periods, depending on the delivery months. dition to backwardation is known as contango (see Appendix 2). Extensive literature exists concerning the drivers of commodity returns and backwardation in particular. Keynes [1930] developed the classical theory of backwardation-driven commodities futures prices, wherein backwardation arises because of the risk aversion of com-modity inventory

PDF The authors investigate contango and backwardation formations and seasonality traits in Malaysia over 22 years spanning 1995 to 2017. contango … Contango and Backwardation Contango and backwardation are terms that describe the relationship between the prices of commodity futures contracts with different delivery dates. Commodity futures contracts are exchange-traded contracts that offer price exposure to commodities across different periods, depending on the delivery months.

WTI Crude Oil: Backwardation? No, Back to Contango On March 8, 2017 crude oil plummeted more than 5%, with WTI price falling through $50 a barrel for the first time since December. The sudden move was triggered by EIA reporting a massive build-up in American crude oil inventories, hitting record levels according to data going back to 1982. Voiceover: Let's do a quick review of contango and backwardation because they really are opposites of each other, but they're used in different context, sometimes with the exact right meaning, sometimes with the not so right meaning, so …

Normal backwardation, also sometimes called backwardation, is the market condition wherein the price of a commodities' forward or futures contract is trading below the expected spot price at contract maturity. The resulting futures or forward curve would typically be downward sloping (i.e. "inverted"), since contracts for further dates would typically trade at even lower prices. dition to backwardation is known as contango (see Appendix 2). Extensive literature exists concerning the drivers of commodity returns and backwardation in particular. Keynes [1930] developed the classical theory of backwardation-driven commodities futures prices, wherein backwardation arises because of the risk aversion of com-modity inventory

May 24, 2017 · "Backwardation is the solution" to OPEC's problem of how to raise output and revenues without sparking another shale boom, according to the influential oil research team at Goldman Sachs. Who We Are. Contango Oil & Gas Company is a Houston, Texas based, independent energy company whose business is to maximize production from its shallow offshore Gulf of Mexico properties and onshore properties in Texas and Oklahoma, and to use that cash flow to explore, develop, exploit, produce and acquire crude oil and natural gas properties across the United …

Dec 31, 2018 · The Cost of Contango—It’s Not the Daily Roll. December 31, Now just to summarize my understanding of the article’s concept: regardless of M1/M2 relation (backwardation or contango) only the value of VIX spot relative to values of M1 and M2 matters. When the spot is higher than the futures then (generally) it’s a backwind for long Jul 14, 2014 · What is contango and backwardation? Nathan Buehler. Loading... Unsubscribe from Nathan Buehler? How To Convert pdf to word without software - Duration: 9:04.

Feb 26, 2014 · Contango and backwardation 1. Tired by searching meaning of contango and backwardation over the internet? 2. Confused in understanding concept of contango and backwardation by referring innumerable websites over the web? But the question still remains, How to understand contango and backwardation in simple language 3. Don’t worry! Aug 29, 2018 · When thinking of contango and backwardation, understand the mechanics of what's going on so that you can tilt a strategy in one direction versus the other. Traders use backwardation and contango as triggers of market tops and bottoms. Having an understanding of contango and backwardation in the market can help you in the future.

The two market condition contango Vs backwardation is very important for the commodity hedgers and speculators. The fact in the year 1993, the German company Metallgesellschaft lost 1 billon dollar because there expert team developed the hedging system under backwardation but they didn’t anticipate a shift to contango situation. Backwardation A market condition in which futures prices are lower in the distant delivery months than in the nearest delivery month. This may occur when the costs of storing the product until eventual delivery are effectively subtracted from the price today. The opposite of contango. Backwardation In Keynesian economics, a theory stating that the

Contango vs. Normal Backwardation What's the Difference?

contango and backwardation pdf

Should OPEC worry about contango and backwardation? Reuters. Who We Are. Contango Oil & Gas Company is a Houston, Texas based, independent energy company whose business is to maximize production from its shallow offshore Gulf of Mexico properties and onshore properties in Texas and Oklahoma, and to use that cash flow to explore, develop, exploit, produce and acquire crude oil and natural gas properties across the United …, Normal backwardation, also sometimes called backwardation, is the market condition wherein the price of a commodities' forward or futures contract is trading below the expected spot price at contract maturity. The resulting futures or forward curve would typically be downward sloping (i.e. "inverted"), since contracts for further dates would typically trade at even lower prices..

Differences Between Contango and Normal Backwardation in

contango and backwardation pdf

Contango Backwardation and VXX Terry's Tips Stock. May 24, 2017 · "Backwardation is the solution" to OPEC's problem of how to raise output and revenues without sparking another shale boom, according to the influential oil research team at Goldman Sachs. https://de.wikipedia.org/wiki/Contango for 30 days than for 60 days, it might be said that the silver lease rates are in backwardation“ . ” The opposite market condition to backwardation is known as contango; see Appendix 2. An extensive literature exists concerning the drivers of commodity returns and backwardation in ….

contango and backwardation pdf


Jun 07, 2012 · A contango market is often confused with a normal futures curve; and a normal backwardation market is confused with an inverted futures curve. Let's start by getting an understanding of the Feb 28, 2019 · Abstract. The authors investigate contango and backwardation formations and seasonality traits in Malaysia over 22 years spanning 1995 to 2017. Employing graphical observations and statistical tests, contango and backwardation traits appear through market expectations, seasonality, cost of carry model predictions, and index volatility.

Jul 23, 2012 · CONTANGO WATCH: Natural gas remained in backwardation for a third week amid scorching summer temperatures across the United States. For the next month or two, roll costs should not be a major Apr 15, 2013 · Normal backwardation compares futures price with expected future spot, while backwardation uses the futures price with the current spot price, same for contango. The idea is if the expected future spot is higher than the actual futures contract price, you …

Contango and backwardation Weak-form market efficiency Investor demand Spot-futures relation Crude palm oil ABSTRACT This study examines the hypothesis of Tilton et al. (2011) that assert investor demand affects commodity prices when spot and futures prices are closely correlated during strong contango in a hard commodity like copper. Contango and normal backwardation refer to the pattern of prices over time, specifically if the price of the contract is rising or falling.

Dec 31, 2018 · The Cost of Contango—It’s Not the Daily Roll. December 31, Now just to summarize my understanding of the article’s concept: regardless of M1/M2 relation (backwardation or contango) only the value of VIX spot relative to values of M1 and M2 matters. When the spot is higher than the futures then (generally) it’s a backwind for long Feb 28, 2019 · Abstract. The authors investigate contango and backwardation formations and seasonality traits in Malaysia over 22 years spanning 1995 to 2017. Employing graphical observations and statistical tests, contango and backwardation traits appear through market expectations, seasonality, cost of carry model predictions, and index volatility.

To see why backwardation and contango are important, look at the chart below, showing the spread between the current near month crude oil contract and the one that is 11 months out. Right now, oil futures are in an extreme condition of contango which implies that oil prices are oversold and bottoming. Feb 22, 2014 · BACKWARDATION The opposite market condition to Contango is known as normal backwardation. A market is "in backwardation" when the futures price is below the expected future spot price for a particular commodity. This is favourable for investors who have long positions since they want the futures price to rise.

Apr 15, 2013 · Normal backwardation compares futures price with expected future spot, while backwardation uses the futures price with the current spot price, same for contango. The idea is if the expected future spot is higher than the actual futures contract price, you … Contango and Backwardation Contango and backwardation are terms that describe the relationship between the prices of commodity futures contracts with different delivery dates. Commodity futures contracts are exchange-traded contracts that offer price exposure to commodities across different periods, depending on the delivery months.

Jun 07, 2012 · A contango market is often confused with a normal futures curve; and a normal backwardation market is confused with an inverted futures curve. Let's start by getting an understanding of the Apr 03, 2017 · These terms, contango and normal backwardation, refer to the pattern of future prices over time. Contango is a situation where the futures price of a commodity is higher than the expected future spot price (supply driven). The opposite of a contango is when a futures market is in normal backwardation.

Basis, Contango, and Backwardation . Lecture 5 covers the concepts of basis, contango, and backwardation. This handout helps disentangle the relationship between an increase or decrease in the basis when the market is in contango verses backwardation. Definitions . Basis: The difference between the spot price and the futures price at a given CONTANGO ASSET MANAGEMENT LIMITED. Contango Asset Management Limited (ASX:CGA) is a financial services company with a marketing and distribution platform that partners with, and promotes, high quality fund managers to the self-directed and Independent Financial Adviser (IFA) channels of the $2 trillion superannuation industry.

Understanding contango and backwardation can assist you in analyzing the current supply and demand characteristics of any commodity market. Commodities in a Bear Market—a Historical Example Commodity prices entered a bear market when they made highs in 2011. Dec 31, 2018 · The Cost of Contango—It’s Not the Daily Roll. December 31, Now just to summarize my understanding of the article’s concept: regardless of M1/M2 relation (backwardation or contango) only the value of VIX spot relative to values of M1 and M2 matters. When the spot is higher than the futures then (generally) it’s a backwind for long

Mar 25, 2016 · If you've read an article lately about a commodity market being in contango and thought it related to Latin dancing, you wouldn't be the first, and you certainly won't be the last. While the term Basis, Contango, and Backwardation . Lecture 5 covers the concepts of basis, contango, and backwardation. This handout helps disentangle the relationship between an increase or decrease in the basis when the market is in contango verses backwardation. Definitions . Basis: The difference between the spot price and the futures price at a given

Contango and Backwardation as Predictors of Commodity Price Direction Abstract: This study examines whether term structure can be used as a predictor of commodity price direction. It uses daily prices for the S&P GSCI and each of the 24 underlying commodities from January 2007 through December 2013. During each day of the monthly roll Voiceover: Let's do a quick review of contango and backwardation because they really are opposites of each other, but they're used in different context, sometimes with the exact right meaning, sometimes with the not so right meaning, so …

for 30 days than for 60 days, it might be said that the silver lease rates are in backwardation“ . ” The opposite market condition to backwardation is known as contango; see Appendix 2. An extensive literature exists concerning the drivers of commodity returns and backwardation in … The theory of storage and the convenience yield. 2008 Summer School - UBC 2 The theory of storage • Contango Spot price < Futures price Section 2. The analysis of contango and backwardation Section 3. The convenience yield Section 4. Empirical tests of the storage theory Section 5. Critiques of the theory. 2008 Summer School - UBC 6

Why is the VIX futures market usually in a state of contango? Ask Question Asked 5 years, 4 months ago. It seems like the VIX futures market should be in a state of contango about as frequently as it is in a state of backwardation. What causes contango in the VIX futures market, and why is it the usual state of the market? $\begingroup for 30 days than for 60 days, it might be said that the silver lease rates are in backwardation“ . ” The opposite market condition to backwardation is known as contango; see Appendix 2. An extensive literature exists concerning the drivers of commodity returns and backwardation in …

contango and backwardation pdf

Dec 31, 2018 · The Cost of Contango—It’s Not the Daily Roll. December 31, Now just to summarize my understanding of the article’s concept: regardless of M1/M2 relation (backwardation or contango) only the value of VIX spot relative to values of M1 and M2 matters. When the spot is higher than the futures then (generally) it’s a backwind for long for 30 days than for 60 days, it might be said that the silver lease rates are in backwardation“ . ” The opposite market condition to backwardation is known as contango; see Appendix 2. An extensive literature exists concerning the drivers of commodity returns and backwardation in …