backwardation

Example:Unlike backwardation, where the spot price is higher than the futures price, contango occurs when the futures price is higher than the spot price, as seen in the oil market.

Definition:A market condition in futures and commodities where the present price is lower than the expected future price, resulting in a positive price differential.

Example:The scenario of price inversion in the agricultural sector can lead to significant economic implications, such as reduced investment in the production of that commodity.

Definition:A term used to describe a market condition where the current price of a commodity exceeds the expected future price, resulting in a negative price gradient.