Backwardation ((For more see chapter 48 of the Vernimmen)) When commodity makets show futures prices below the spot price this is known as backwardation. The reverse scenario is known as contango. Backwardation is unfrequent for a persishable commodity that has a cost of carry, so grains such as corn and wheat, and sugar, are often in contango. Backwardation ((For more see chapter 48 of the Vernimmen)) When commodity makets show futures prices below the spot price this is known as backwardation. The reverse scenario is known as contango. Backwardation is unfrequent for a persishable commodity that has a cost of carry, so grains such as corn and wheat, and sugar, are often in contango. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Backwardation" :

BIMBO Back-stop Back-up line Backdoor equity hypothesis Backwardation Balance sheet Bank guarantee Bank-based economy Bankruptcy Bankruptcy costs Barrier currency option Barrier interest rate option Barrier option Base Basis point Bear market Bearer bond Bearer shares Behavio(u)ral finance Below investment grade Benchmark Benchmark switching Benchmarking

Best efforts basis Beta Beta coefficient Beta is also called beta coefficient. Beta of assets Bid-ask spread Bid-ask spread is also called spread. Bill of exchange Binomial method Black & Scholes Model Black-out period Block Block ownership Blocking minority Bolt-on projects Bond Bond redeemable in shares Bond redemption premium Bond value of the convertible bond Book Book profitability Book value Book value of shareholders’ equity

Book-building Bookrunner Bootstrap game Bootstrapping model Bottom-up approach Bought deal Brands and market share Breakeven Bridge equity Bridge loan Bull market Bullet bond Bullet repayment Business cycle Business loan Buy and hold Buy-in Buy-sell provision Buyer’s credit By-category income statement format By-destination income statement format By-function income statement format By-nature income statement format