contango
noun[U]
uk/kənˈtæŋɡəʊ/usFINANCE,STOCK MARKET
asituationin which thepriceof acommodity(= aproductsuch asoilor ametalthat istradedinlargequantities)ishigherif thebuyeris toreceivethecommodityat afuturedatethan it is if thebuyerreceivesitimmediately:
Thepriceslumpwouldcreateconditionsof contango, wheremassivecurrentsupplyputs thespotpricebelow thefuturesprice.
Much of thecommoditymarketis atpresentin contango.
Compare
backwardation