How I read the Futures Forward Curve

About Contango & Backwardation from a futures traders standpoint

During the last weeks, I got many questions about how I judge the forward curve of commodities, as well as the importance of contangos and backwardation. So here is what I’m looking for in the forward curve.

Let’s start with a simple definition of both forward curve structures:

Contango and backwardation are terms used to define the structure of the forwa…