Contango in a sentence

A market where futures prices are generally greater than spot prices is referred to as a “contango” market.

Gabelli Funds LLC lessened its position in Contango Ore, Inc. () by 2.9% in the second quarter, according to its most recent disclosure with the SEC.

Reflecting near-term bearishness, the benchmark oil contracts slipped back into contango in Asia trade on Thursday, meaning spot prices were lower than those for delivery months later.

Contango Ore, Inc. () was the recipient of a large decrease in short interest during the month of September.

The notes index selects contracts based on the shape of the futures curve to minimize contango.

That's what many traders are betting on, creating the contango structure with many rushing to grab onshore and floating storage to hoard crude.

This is an odd oil market situation called contango, which is a lot less fun than it sounds.

With the world awash with price war oil that nobody wants, the Brent contango at record highs, and the world mired in a virus recession, only the wildest optimist could construct a reason to be long oil, even at these levels.

Contango is a state of the market in which contracts in the back are priced higher than contracts in the front.

The physically-backed methodology prevents investors from getting hurt by the contango structure of the platinum market, contrary to ETFs using futures contracts.

Jane Street Group LLC bought a new stake in shares of Contango Oil & Gas in the 2nd quarter worth $219,000.

A futures contract in contango will decrease in value until it equals the spot price of the underlying at maturity.

By the same token, a market that is deeply in contango may indicate a perception of a current supply surplus in the commodity.

Carolyn Cui, "Getting Tripped Up by the Contango: A futures-market quirk can hurt commodities returns—if investors aren't aware of it," The Wall Street Journal, 17 December 2010, pp. C5, C8.

Contango is a potential trap for unwary investors.

If such is the case, the premium may have ended when global oil storage capacity became exhausted; the contango would have deepened as the lack of storage supply to soak up excess oil supply would have put further pressure on spot prices.

If the spot price is lower than the futures price, the market is in contango." citation The futures or forward curve would typically be upward sloping (i.e. "normal"), since contracts for further dates would typically trade at even higher prices.

In 2005 and 2006 a perception of impending supply shortage allowed traders to take advantages of the contango in the crude oil market.

Interest rates If short-term interest rates were expected to fall in a contango market, this would narrow the spread between a futures contract and an underlying asset in good supply.

In this situation, called contango, speculators must be net short.