Commentary by Eric Wilder – This Week In Petroleum, the weekly report of the EIA, has an interesting discussion about a market condition called contango.

Contango, according to TWIP,  is defined as a market in which prices for commodities delivered in future months are increasingly higher than for those delivered in months closer to the present.  When contango occurs, inventory holders can increase their profits by buying now and selling later for a higher price.

Contango, along with other little-known market factors, affect commodity prices and must, along with the weather, and supply and demand, be taken into account by marketers. http://www.ericwilder.com  http://justeastofeden.blogharbor.com