# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Backwardation

Backwardation is the opposite of Contango, and refers to a situation when the current price for a commodity (called the 'spot price') is higher than the price for a far future delivery.

Backwardation would occur in instances where demand is high in the near term (because of a fear of future scarcity, for instance).

Interested in learning more about commodities?

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