| 1. | The opposite market condition to normal backwardation is known as contango.
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| 2. | In this situation, called contango, speculators must be net short.
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| 3. | Contango used to be the'normal'for the oil market.
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| 4. | Speculation and investment requirements later shaped the common contango trend.
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| 5. | Contango is a potential trap for unwary investors.
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| 6. | For perishable commodities, price differences between near and far delivery are not a contango.
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| 7. | Likewise, contango implies that futures prices for a certain maturity are falling over time.
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| 8. | Jacobsson originally worked in the inventor of the oil Contango market in the early 1990s.
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| 9. | A contango is normal for a non-perishable commodity that has a cost of carry.
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| 10. | If the spot price is lower than the futures price, the market is in contango ."
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