March Backwardation Report: Energy Futures Downward Sloping
March 24, 2014 at 07:00 AM EDT
Backwardation is the process by which futures contracts decrease in price as they move further out in maturity. This can often be due to the expectation of future prices or trends in a certain hard asset, but it can also occur from supply boosts, among other things. Though it is not a phenomenon that should worry investors, keeping an eye on the futures curve can help you make more informed investment decisions [for more commodity news and analysis subscribe to our free newsletter ]. See the full story here → Related Posts: Backwardation Report: Cotton, Crude and Gasoline Face Falling Prices For Day Traders: The Most Liquid ETF for Every Commodity For Long Term Investors: The Cheapest ETF for Every Commodity How To Profit From The Gasoline Rally Backwardation Report: A Mixed Bag