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…