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Backwardation
Backwardation is where the cash or nearby delivery price of a commodity rises above the price for forward delivery. Usually, forward prices are higher than cash prices to reflect the costs of storage and insurance for stocks deliverable at a later date. This situation is known as contango. Backwardation can be the result of a shortage of near term supplies; spot prices rise as a result but if increased supplies are expected in the future forward prices will stay steady.