currently about 17/18 pips lower on the new June contract
for instance at 6:40pm pst: 6E 1.3918 v spot 1.3935
"Backwardation is the name for the condition that the market quotes a lower price
for a more distant delivery date, and a higher price for a nearby delivery date."
http://en.wikipedia.org/wiki/Normal_backwardation
"Good bull markets should always and everywhere see contangos narrow and
eventually should see contangos disappear and backwardations develop." - Dennis Gartman
and from attached pdf
"Markets can move to a backwardation when and only when demand outpaces
supply. A backwardated market is simply the term structures way of forcing a
storable commodity out of storage in order to meet rising demand. Indeed, it is
a general rule amongst grain traders to "Never sell a backwardated market," for
the backwardation speaks loudly of strong demand."
for instance at 6:40pm pst: 6E 1.3918 v spot 1.3935
"Backwardation is the name for the condition that the market quotes a lower price
for a more distant delivery date, and a higher price for a nearby delivery date."
http://en.wikipedia.org/wiki/Normal_backwardation
"Good bull markets should always and everywhere see contangos narrow and
eventually should see contangos disappear and backwardations develop." - Dennis Gartman
and from attached pdf
"Markets can move to a backwardation when and only when demand outpaces
supply. A backwardated market is simply the term structures way of forcing a
storable commodity out of storage in order to meet rising demand. Indeed, it is
a general rule amongst grain traders to "Never sell a backwardated market," for
the backwardation speaks loudly of strong demand."