Contango Reports
Contango Report: WTI Stays In Steady Contango
October 08, 2012
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Featured Commodity
CONTANGO WATCH: Despite spiking prices and a shortage of gasoline, crude oil prices held relatively firm last week. The U.S. benchmark, WTI, remains in steady contango. BOTTOM LINE: 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 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 ):
Energy
WTI
WTI
Current Annualized Cost
5.41% Annualized Cost 1 Week Previous 4.53% Historical 10/05 5YR Annualized Roll 2.63% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCWTI
CONTANGO WATCH: Despite spiking prices and a shortage of gasoline, crude oil prices held relatively firm last week. The U.S. benchmark, WTI, remains in steady contango. ROLL COSTS: It costs investors 5.41 percent annualized to roll front-month WTI contracts. BOTTOM LINE: Contango Brent
Brent
Current Annualized Cost
-8.30% Annualized Cost 1 Week Previous -8.76% Historical 10/05 5YR Annualized Roll 2.27% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCBrent
CONTANGO WATCH: Brent's backwardation narrowed last week. ROLL COSTS: Investors net 8.3 percent annualized from rolling front-month Brent contracts, down from 8.76 percent. BOTTOM LINE: Backwardation HH Natural Gas
HH
Current Annualized Cost
177.89% Annualized Cost 1 Week Previous 170.14% Historical 10/05 5YR Annualized Roll 200.88% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCHH
CONTANGO WATCH: The natural gas contango widened, remaining at extremely steep levels. ROLL COSTS: It costs investors 177.89 percent annualized to roll front-month natural gas contracts, down from 170.14 percent. BOTTOM LINE: Steep Contango Precious Metals
Gold
Gold
Current Annualized Cost
0.64% Annualized Cost 1 Week Previous 0.64% Historical 10/05 5YR Annualized Roll 1.17% Contract Months: Feb Apr Jun Aug Oct Dec RCGold
CONTANGO WATCH: Gold is in mild contango. ROLL COSTS: It costs investors 0.64 percent annualized to roll front-month gold contracts, same as last week. BOTTOM LINE: Mild Contango Silver
Silver
Current Annualized Cost
-10.90% Annualized Cost 1 Week Previous -6.85% Historical 10/05 5YR Annualized Roll -1.06% Contract Months: Jan Mar May Jul Sep Dec RCSilver
CONTANGO WATCH: Silver is in backwardation at the front end of the forward curve. ROLL COSTS: Investors net 10.9 percent annualized from rolling front-month silver contracts, up from a net of 6.85 percent. BOTTOM LINE: Backwardation to Contango Platinum
Platin
Current Annualized Cost
0.09% Annualized Cost 1 Week Previous -3.86% Historical 10/05 5YR Annualized Roll 1.13% Contract Months: Jan Apr Jul Oct RCPlatin
CONTANGO WATCH: Platinum is in contango. ROLL COSTS: It costs investors 0.09 percent annualized to roll front-month platinum contracts, down from a net of 3.86 percent. BOTTOM LINE: Mild Contango Palladium
Pallad
Current Annualized Cost
0.62% Annualized Cost 1 Week Previous 0.81% Historical 10/05 5YR Annualized Roll 1.44% Contract Months: Mar Jun Sep Dec RCPallad
CONTANGO WATCH: Palladium is in mild contango at the very front end of the curve. ROLL COSTS: It costs investors 0.62 percent annualized to roll front-month palladium contracts, down from a cost of 0.81 percent. BOTTOM LINE: Mild Contango Industrial Metals
Copper
Copper
Current Annualized Cost
0.14% Annualized Cost 1 Week Previous 0.22% Historical 10/05 5YR Annualized Roll 0.33% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCCopper
CONTANGO WATCH: Copper is in mild contango across most of the one-year forward curve. ROLL COSTS: It costs investors 0.14 percent annualized to roll front-month copper contracts, down from a cost of 0.22 percent. BOTTOM LINE: Mild Contango Aluminum
Alum
Current Annualized Cost
6.46% Annualized Cost 1 Week Previous 5.70% Historical 10/05 5YR Annualized Roll 6.68% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCAlum
CONTANGO WATCH: The aluminum forward curve is in steady contango. ROLL COSTS: Front-month roll costs rose to 6.46 percent annualized, up from 5.70 percent. BOTTOM LINE: Contango Zinc
Zinc
Current Annualized Cost
6.29% Annualized Cost 1 Week Previous 5.45% Historical 10/05 5YR Annualized Roll 4.61% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCZinc
CONTANGO WATCH: Zinc is in contango across the one-year forward curve. ROLL COSTS: It costs investors 6.29 percent annualized to roll front-month zinc contracts, up from 5.45 percent. BOTTOM LINE: Contango Lead
Lead
Current Annualized Cost
0.00% Annualized Cost 1 Week Previous -0.66% Historical 10/05 5YR Annualized Roll 2.52% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCLead
CONTANGO WATCH: Lead is in contango across most of the one-year forward curve. ROLL COSTS: It costs investors nothing annualized to roll second-month lead contracts, down from a net of 0.66 percent. BOTTOM LINE: Flat to Contango Nickel
Nickel
Current Annualized Cost
1.32% Annualized Cost 1 Week Previous 1.11% Historical 10/05 5YR Annualized Roll 1.91% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCNickel
CONTANGO WATCH: Nickel is in mild contango throughout the forward curve. ROLL COSTS: Roll costs for nickel edged up to 1.32 percent from 1.11 percent. BOTTOM LINE: Mild Contango Tin
Tin
Current Annualized Cost
0.27% Annualized Cost 1 Week Previous -1.09% Historical 10/05 5YR Annualized Roll -2.14% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCTin
CONTANGO WATCH: The tin forward curve is in mild contango in the front half of the curve and mild backwardation thereafter. ROLL COSTS: It costs investors 0.27 percent annualized to roll second-month tin contracts, down from a net of 1.09 percent. BOTTOM LINE: Mild Contango to Mild Backwardation Agricultural Commodities
Corn
Corn
Current Annualized Cost
0.14% Annualized Cost 1 Week Previous 1.72% Historical 10/05 5YR Annualized Roll 10.20% Contract Months: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec RCCorn
CONTANGO WATCH: Corn is in mild contango at the front end of the curve. ROLL COSTS: It costs investors 0.14 percent annualized to roll front-month corn contracts, down from a cost of 1.72 percent. BOTTOM LINE: Mild Contango to Backwardation Wheat
Wheat
Current Annualized Cost
5.11% Annualized Cost 1 Week Previous 4.90% Historical 10/05 5YR Annualized Roll 16.97% Contract Months: Mar May Jul Sep Dec RCWheat
CONTANGO WATCH: Wheat's contango widened slightly last week. ROLL COSTS: Wheat's annualized front-month roll costs rose to 5.11 percent from 4.9 percent. BOTTOM LINE: Contango to Backwardation Soybeans
SoyB
Current Annualized Cost
-1.07% Annualized Cost 1 Week Previous 0.85% Historical 10/05 5YR Annualized Roll 5.02% Contract Months: Jan Mar May Jul Aug Sep Nov RCSoyB
CONTANGO WATCH: Soybeans is in mild backwardation across the one-year forward curve. ROLL COSTS: Investors net 1.07 percent annualized from rolling front-month soybeans contracts, up from a cost of 0.85 percent. BOTTOM LINE: Mild Backwardation Live Cattle
LiveC
Current Annualized Cost
18.11% Annualized Cost 1 Week Previous 19.32% Historical 10/05 5YR Annualized Roll 7.54% Contract Months: Feb Apr Jun Aug Oct Dec RCLiveC
CONTANGO WATCH:The live cattle curve is in contango across most of the one-year forward curve. ROLL COSTS: It costs investors 18.11 percent annualized to roll front-month live cattle contracts, down from a cost of 19.32 percent. BOTTOM LINE: Contango Lean Hogs
LeanH
Current Annualized Cost
51.08% Annualized Cost 1 Week Previous 66.00% Historical 10/05 5YR Annualized Roll 65.50% Contract Months: Feb Apr May Jun Jul Aug Oct Dec RCLeanH
CONTANGO WATCH: The front end of the lean hogs forward curve is in backwardation. ROLL COSTS: It costs investors 51.08 percent annualized to roll second-month lean hogs contracts, down from a cost of 66 percent. BOTTOM LINE: Backwardation to Contango to Backwardation Soft Commodities
Coffee C
Coffee
Current Annualized Cost
9.63% Annualized Cost 1 Week Previous 8.94% Historical 10/05 5YR Annualized Roll 9.02% Contract Months: Mar May Jul Sep Dec RCCoffee
CONTANGO WATCH: Coffee is in contango throughout the one-year forward curve. ROLL COSTS: It costs investors 9.63 percent annualized to roll front-month coffee contracts, up from a cost of 8.94 percent. BOTTOM LINE: Contango Cocoa
Cocoa
Current Annualized Cost
2.38% Annualized Cost 1 Week Previous 2.46% Historical 10/05 5YR Annualized Roll 3.38% Contract Months: Mar May Jul Sep Dec RCCocoa
CONTANGO WATCH: Cocoa is in contango across most of the one-year forward curve. ROLL COSTS: It costs investors 2.38 percent annualized to roll front-month cocoa contracts, down from a cost of 2.46 percent. BOTTOM LINE: Contango Sugar #11
Sugar
Current Annualized Cost
-1.39% Annualized Cost 1 Week Previous -0.29% Historical 10/05 5YR Annualized Roll -13.19% Contract Months: Mar May Jul Oct RCSugar
CONTANGO WATCH: Sugar is in mild backwardation at the front end of the curve. ROLL COSTS: Investors net 1.39 percent annualized from rolling front-month sugar contracts, up from a net of 0.29 percent. BOTTOM LINE: Mild Backwardation to Contango Cotton #2
Cotton
Current Annualized Cost
4.83% Annualized Cost 1 Week Previous 5.65% Historical 10/05 5YR Annualized Roll 8.61% Contract Months: Mar May Jul Oct Dec RCCotton
CONTANGO WATCH: Cotton is in contango throughout the one-year forward curve. ROLL COSTS: It costs investors 4.83 percent annualized to roll front-month cotton contracts, down from a cost of 5.65 percent. BOTTOM LINE: Contango
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