Meaning of “contango” in the English Dictionary


"contango" in Business English

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contangonoun [ U ]

uk /kənˈtæŋɡəʊ/ us

FINANCE, STOCK MARKET a situation in which the price of a commodity (= a product such as oil or a metal that is traded in large quantities) is higher if the buyer is to receive the commodity at a future date than it is if the buyer receives it immediately:

The price slump would create conditions of contango, where massive current supply puts the spot price below the futures price.
Much of the commodity market is at present in contango.

(Definition of “contango” from the Cambridge Business English Dictionary © Cambridge University Press)