Definitions for contango
con·tan·go

WiktionaryRate this definition:0.0 / 0 votes

1. contangonoun

   Fee paid by a buyer to the seller on settlement day when the buyer wishes to defer settlement until the next settlement day.

   2005: most of these other commodities are generally in contango uE000195441uE001 Futures Industry Magazine

2. contangonoun

   The situation in a futures market where prices for future delivery are higher than prices for immediate (or nearer) delivery.

   2005: most of these other commodities are generally in contango uE000195441uE001 Futures Industry Magazine

3. contangonoun

   The amount by which prices for future delivery are higher than prices for near delivery.

   2003: Normally new buyers would go after the March silver contract, especially with such a small contango. uE000195442uE001 Bill Murphy, Kitco Bullion Dealers

Webster DictionaryRate this definition:0.0 / 0 votes

1. Contangonoun

   the premium or interest paid by the buyer to the seller, to be allowed to defer paying for the stock purchased until the next fortnightly settlement day

2. Contangonoun

   the postponement of payment by the buyer of stock on the payment of a premium to the seller. See Backwardation

3. Etymology: [Prob. a corruption of contingent.]

FreebaseRate this definition:0.0 / 0 votes

1. Contango

   Contango is the market condition wherein the price of a forward or futures contract is trading above the expected spot price at contract maturity. The futures or forward curve would typically be upward sloping, since contracts for further dates would typically trade at even higher prices. A contango is normal for a non-perishable commodity that has a cost of carry. Such costs include warehousing fees and interest forgone on money tied up, less income from leasing out the commodity if possible. For perishable commodities, price differences between near and far delivery are not a contango. Different delivery dates are in effect entirely different commodities in this case, since fresh eggs today will not still be fresh in 6 months' time, 90-day treasury bills will have matured, etc. The opposite market condition to contango is known as backwardation.

Chambers 20th Century DictionaryRate this definition:0.0 / 0 votes

1. Contango

   kon-tang′go, n. a percentage paid by the buyer to the seller of stock for keeping back its delivery to the next settling-day, continuation—opp. to Backwardation. [From Continue.]

How to pronounce contango?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say contango in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of contango in Chaldean Numerology is: 8

2. Pythagorean Numerology

   The numerical value of contango in Pythagorean Numerology is: 8

Examples of contango in a Sentence

1. Nabil Naccoul:

   Given the contango, those who hedged the calendar year have done better. Producers are doing more calendar hedging and right now as hedging the front doesn't make any sense because of the shape of the curve, if you're confident that current prices and the shape of the curve are here to stay, then it makes sense to hedge at these levels.

2. Ursula Marchioni:

   With the fundamental outlook for oil not improving significantly, outflows are likely short-term investors taking money off the table after a nice recovery in oil prices since late March, oil ETPs are not ideal for longer-term bets due to roll costs eroding returns and the market has been in contango ever since the ETP flows began to pick up late last year.

3. David Fyfe:

   I suspect there is some potential for that contango to steepen. Particularly as companies are curbing their spendingthat looks to me like a very cheap back end of the curve.

4. Nabil Naccoul:

   Consumer hedging activity slowed a lot after 2008, but we've seen more recently. A lot had hedged around US$100 and with the market now at US$50 they should perhaps be doing more, but they tend to take a more opportunistic approach to hedging especially in a contango market.

5. Svein Moxnes Harfjeld:

   One would need a contango in the oil market to justify floating storage. Given the current developments in the oil market this cannot be ruled out, continued oil demand and longer transportation distances combined with no fleet growth should support our expectations for 2015 on average to be better than 2014.

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