Backwardation (also referred to in German)

The futures price of a commodity on the commodity futures market is below the spot price; the opposite (i.e., the spot price is above the futures price) is called contango. Backwardation is unfrequent for a persishable commodity that has a cost of carry, so grains such as corn and wheat, and sugar, are at the most in contango. In backwardation, market participants tend to “roll” expiring futures contracts into longer contracts. – In bond trading, the interest that the seller still has to bear. – See market, inverse.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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