I read somewhere that contango/backwardation isn't much of a factor in the metals as it is in the ags and the oil complex. If true, how come?
Basis in metals is about storage costs + supply and demand in the market. I don't trade ags but the old crop/new crop game is pretty much all about basis. In metals, basis is a bit more subtle, you're right
Why the hell doesn't it apply in meats? The price of live cattle today is the same as it was 3 years ago. So why is meat more expensive per pound in the store than it was three years ago! Oh, the damned packers gouging the hell out of the consumer. Forgot about that. Damned cows!
I have never traded meats in my entire live. Cattle still has a live pit and the market is so opaque. I would not know where to start researching and those farmers know a thing more or two about cows than me
I wonder if there is a guide or book that describes or even somehow quantifies the importance or lack of importance of contango/backwardation in various futures.
As long as you are investing in commodities ETFs, backwardation is better than contango. It’s simple, investors can never know which way the market will go and so, futures like wheat, and natural gas can be invested with contango but soybean and gasoline are usually with backwardation.