Jun

17

 Cotton, sugar, corn, and soybeans all have significant backwardation between the July contracts nearing first notice and the new harvest contracts. The entire forward pricing curve is backwardated for soybeans, but the curves for cotton and sugar reverse to contango.

Soybeans
Jul’12 1379.75
Nov’12 1316.50
Nov’13 1189.50

Cotton
Jul’12 80.04
Dec’12 71.15
Dec’13 76.70

Sugar
Jul’12 20.77
Oct’12 20.01
Oct’13 20.95

Harry Kat found that commodities in backwardation are more likely to positive returns, and commodities in contango to have negative returns.


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search