A market condition in which a futures price is lower in the distant delivery months than in the near delivery months.

Use backwardation in a sentence

You may want to try and figure out if you can use backwardation and turn it in your companies favor.

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I learned about backwardation and figured out that it meant the future prices would be lower in the distant months.

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Analysts are speculating that oil will succumb to backwardation as they continue to project oil futures lower than given the continued increase in oil production using new techniques across the globe.

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forward discount contango