In this case yes, probably it is going to be a shortage of commodity. But whether it is an impact from demand or supply side - another question.

Kind regards,
Dominykas Grigonis




> On Jun 30, 2014, at 12:05 AM, Christofer Bogaso <bogaso.christofer@gmail.com> wrote:
> 
> 
> Just mentioned it on light manner in plain english...
> 
> 
> I meant to say all forward quotes are less then spot and for distant
> forward months it would be more lesser. English is not my primary
> language so if I could not explain it properly, then as an example I
> would like to point here
> http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html
> 
> 
> On Mon, Jun 30, 2014 at 4:45 AM, Michael Weylandt
> <michael.weylandt@gmail.com> wrote:
> 
> 
>>> On Jun 29, 2014, at 18:32, Christofer Bogaso <bogaso.christofer@gmail.com> wrote:
>>> 
>>> 
>>> I defined backwardination as forward curve is downward sloping as
>>> compared to spot. So you may term it as you said 'forward prices
>>> increasing/decreasing'. I felt this is bit different than what you
>>> said as 'difference between expected and futures'.
>>> 
>>> 
>>> 
>> 
>> This is very non-R so the listmaster may tell us off, but until he does:
>> 
>> 
>> What does it mean for a curve to be 'downward sloping *as compared to a point*'?
>> 
>> 
>> Leaving aside the finance, I'm not sure what geometry you're describing here.
>> 
>> 
>> Michael
>> 
>> 
>> 

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