| 1. | The opposite market condition to normal backwardation is known as contango.
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| 2. | Backwardation very seldom arises in money commodities like gold or silver.
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| 3. | There may be few such parties if short-term demand exceeds supply, leading to backwardation.
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| 4. | When the spot price is higher than the futures price, the market is said to be in backwardation.
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| 5. | Soft commodities have been known to adopt a backwardation trend until the late 1990s when futures were actively traded.
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| 6. | It is argued that backwardation is abnormal, and suggests supply insufficiencies in the corresponding ( physical ) spot market.
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| 7. | It is common for copper prices to be in backwardation-- that is, when spot prices exceed forward prices.
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| 8. | The additional supplies could shrink the backwardation in crude prices, reducing the premium for prompt crude compared with forward deliveries.
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| 9. | Nevertheless, the so-called backwardation isn't the reason inventories fell in the first place, they said.
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| 10. | With backwardation, prices for a commodity such as crude oil are lower in future months than they are at present.
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