What does the term contango mean? - ProProfs Discuss
Advertisement

What does the term contango mean?

Asked by Luke, Last updated: Nov 15, 2022

+ Answer
Request
Question menu
Vote up Vote down

1 Answer

John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

The price of a commodity for future delivery is higher than the spot price -contango is a condition in the market where the price of a commodity for future delivery is higher than the spot price. it is an old term for positive carrying charges. as of early summer 2009, the corn market is in contango. the new crop dec09 futures contract is trading at about a 20 cent premium to the nearby jul09 contract. soybean market is not in contango the nearby jul09 contract trades at a sharp premium to deferred contracts. the condition in soybeans is a subject for a future question.
upvote downvote
Reply 

Advertisement
Advertisement
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader
Image Preview
Search for Google images Google Image Icon
Select a recommended image
Upload from your computer Loader

Email Sent
We have sent an email to your address "" with instructions to reset your password.