Retracement occurs when the current price of a commodity is higher than the projected price. Natural disasters and civil unrest can contribute to this, but holding onto futures during the pullback period can lead to excellent returns in subsequent years. As a phenomenon that occurs from time to time with options and futures, a retracement […]

Backwardation occurs when the current price of a commodity is higher than the expected future price. Natural disasters and civil unrest can cause backwardation, but holding onto futures during this period can lead to good returns in subsequent years. Investors tend to offload futures during backwardation, but this may not be the best long-term strategy. […]