Why the strong contango on Ag?

Discussion in 'Commodity Futures' started by Daal, Aug 14, 2007.

  1. Daal


    It seems that the contango on energy now is largely gone but agriculture contracts are strongly in contango, how long does it usually for this to end
  2. The carrying-charge in corn, soybeans, oats and rice is there now to make it easier to absorb the impending harvest. If exports are bigger and faster than expected, the market can "invert" as a way of curtailing demand and getting additional grain out of storage.