Contango Report: NatGas Roll Costs Spike October 01, 2012

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Featured Commodity

CONTANGO WATCH: The natural gas contango widened significantly after the October futures contract expired and November became the front-month contract. The November-to-December roll is currently $0.29, or 170 percent annualized. Based on the futures strip, the market is pricing in a rally in natural gas to $3.67 in December and $3.82 in January.

ROLL COSTS: It costs investors 170.14 percent annualized to roll front-month natural gas contracts.

BOTTOM LINE: Steep Contango

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 U.S.’ most important commodities, helping investors better understand the market and seize buy-and-sell opportunities as soon as they arise.

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 September 28, 2012
Data courtesy IndexUniverse.com

Energy

Agricultural Commodities

Precious Metals

Soft Commodities

Industrial Metals

		Current Roll	Previous Week's Roll	Past Year Average Roll	Historical 09/28 5YR Annualized Roll
Energy	WTI	4.53%	4.14%	0.31%	5.58%
	Brent	-8.76%	-7.48%	-0.59%	1.66%
	HH Natural Gas	170.14%	112.26%	3.41%	185.65%
Precious Metals	Gold	0.64%	0.82%	0.12%	1.27%
	Silver	-6.85%	4.53%	0.14%	-0.21%
	Platinum	-3.86%	1.00%	0.26%	0.65%
	Palladium	0.81%	7.67%	0.25%	1.44%
Industrial Metals	Copper	0.22%	0.22%	-0.01%	-0.11%
	Aluminum	5.70%	8.61%	0.52%	6.27%
	Zinc	5.45%	7.55%	0.13%	5.04%
	Lead	-0.66%	3.60%	0.28%	2.33%
	Nickel	1.11%	1.13%	0.10%	1.75%
	Tin	-1.09%	-1.43%	0.05%	-3.37%
Agricultural Commodities	Corn	1.72%	1.62%	-1.23%	10.06%
	Wheat	4.90%	4.55%	2.33%	15.35%
	Soybeans	0.85%	0.28%	-0.18%	4.88%
	Live Cattle	19.32%	14.96%	1.21%	9.24%
	Lean Hogs	66.00%	-6.36%	0.79%	62.70%
Soft Commodities	Coffee C	8.94%	9.78%	1.10%	8.04%
	Cocoa	2.46%	2.61%	0.77%	3.29%
	Sugar #11	-0.29%	9.06%	-0.83%	-12.47%
	Cotton #2	5.65%	9.77%	-0.29%	7.61%

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