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[This article previously appeared on HardAssetsInvestor.com and is republished here with permission.]
Featured Commodity
CONTANGO WATCH: Brent's backwardation narrowed notably as the September contract fell off the board and October became the front month. Seasonal maintenance on oil facilities in the North Sea will lead to a drop in output in the region in September, but by October production should recover.
Thus, we see a smaller backwardation for the October contract compared with September. However, should tightness in the North Sea market linger longer than expected, the backwardation may widen again.
ROLL COSTS: Investors net 1.96 percent annualized from rolling front-month Brent contracts, down from a net of 18.38 percent.
BOTTOM LINE: Mild Backwardation
Has oil moved into backwardation yet? What does corn's roll yield look like? How do you know when it's time to buy—or sell?
Each week, we investigate the futures curves of the most important commodities in the U.S., helping investors better understand the market and seize buy-and-sell opportunities as soon as they arise. For an easy-to-understand explanation of contango, backwardation and roll yields, please click here to go to our Hard Assets University.
To see current contango curve and front-month roll costs for each of our selected commodities, please select a sector or commodity below (or read the whole report ):
Data as of close on August 17, 2012
Data courtesy IndexUniverse.com
Energy
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Agricultural Commodities
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Precious Metals
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Soft Commodities
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Industrial Metals
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Current Roll |
Previous Week's Roll |
Past Year Average Roll |
Historical 08/20 5YR Annualized Roll |
| Energy |
WTI |
3.69% |
3.65% |
0.30% |
11.59% |
| Brent |
-1.96% |
-18.38% |
-0.65% |
1.18% |
| HH Natural Gas |
19.33% |
16.83% |
3.07% |
70.05% |
| Precious Metals |
Gold |
0.82% |
0.74% |
0.12% |
1.10% |
| Silver |
1.08% |
1.22% |
0.13% |
1.44% |
| Platinum |
0.49% |
0.63% |
0.25% |
1.36% |
| Palladium |
1.04% |
1.10% |
0.25% |
1.64% |
| Industrial Metals |
Copper |
0.32% |
0.28% |
-0.01% |
-0.28% |
| Aluminum |
7.44% |
8.20% |
0.57% |
6.91% |
| Zinc |
5.52% |
4.02% |
0.10% |
4.96% |
| Lead |
1.60% |
1.44% |
0.20% |
0.10% |
| Nickel |
1.63% |
1.65% |
0.09% |
0.61% |
| Tin |
-0.13% |
-0.13% |
0.06% |
-4.52% |
| Agricultural Commodities |
Corn |
4.17% |
4.88% |
-1.07% |
10.70% |
| Wheat |
9.88% |
7.80% |
2.64% |
17.56% |
| Soybeans |
-8.51% |
-10.31% |
-0.08% |
-4.16% |
| Live Cattle |
14.85% |
14.82% |
0.92% |
8.42% |
| Lean Hogs |
-18.80% |
-15.57% |
0.51% |
-11.72% |
| Soft Commodities |
Coffee C |
7.96% |
7.45% |
1.01% |
8.83% |
| Cocoa |
-6.55% |
2.47% |
0.95% |
0.75% |
| Sugar #11 |
8.24% |
5.40% |
-1.67% |
7.92% |
| Cotton #2 |
0.49% |
2.75% |
-0.36% |
3.59% |
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