Contango







What is Contango?
Contango Group has been found to allow for investors with the chance to arrive at the gain of investment primarily in the Australian share market utilising the portfolio investment and management ability of Contango Asset Management Limited. officially, it is the situation where, and the amount by which, the price of a trade good for future delivery is higher than the spot price, or a far future delivery price higher than a nearer future delivery.

A contango is normal for a non-perishable commodity which has a cost of carry. The contango should not exceed the cost of carry, because producers and consumers can compare the futures contract price against the spot price plus storage, and prefer the better one. The contango demonstrate in Crude Oil in 2009 explains the discrepancy between the headline spot price increase and the several deal instruments for Crude Oil suggest a much lower price increase.

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