What is the focus?

As a phenomenon that occurs from time to time with possibilities and futures, there is a status backward when the place or current price of the commodity is higher than the planned or handover price. In short, the price of futures in the coming months of delivery is significant higher than the price set for remote months of delivery. Here are some factors that can contribute to the occurrence of backward.

There are several factors that can lead to an incident backward with a given set of futures. One has to do with naturally occurring events such as catastrophs involving weather. Hurricanes, earthquakes and drought can have a significant impact on current prices and also assume prices in the coming months. Futures is expected to drop value during the recovery period if the main source of these futures has recently suffered a natural disaster. However, if futures can be kept long enough to go through the time of recovery, there is every chance that the period will end up andFutures restores the ascending trend in prices.

Similarly, the occurrence of civil riots or even wars may also have an impact on the current and expected Futures prices. Long -term periods of armed conflicts can prevent the rise of futures for a long time, making them unattractive for many investors. As with natural disasters, futures, which are depressing during the war in the first few years after the end of the conflict, often flourish. Any investor who can afford to hang on to futures at a time of background often realizes an excellent return in later years.

Futures markets usually tend to operate with a lower price price of the price at the moment and with the expectation that futures will increase value in the coming months. Hope that the upcoming months of delivery realizes a price that slowly increases with every consecutive time or at least maintains the level CENES. In general, it is not considered a particularly good sign if the current futures price is expected to exceed the price of several months along the road. Investors tend to interpret futures that appear to be backward, although this may not be the most effective strategy in the long run.