Sentences with phrase «than spot prices»

If futures prices are higher than spot prices, how can holding stocks not be profitable?
Next, since oil for future delivery is currently trading for more than the spot price, a situation traders call «contango», selling into the futures market is a financial win for producers.
If you invest in a fund that always buys one - month oil futures contracts, for instance, and that fund has to pay $ 2 more than the spot price for them, the fund will essentially lose $ 2 per barrel each month when they roll their futures contracts.
A market in which the futures price is lower than the spot price is said to be in backwardation.
If the market for a particular commodity suffers from strong, persistent contango, an ETF that buys futures contracts on that commodity will perform worse than the spot price of the commodity itself.
Germany gets most of its gas from Russia, went as low as $ 145/1000 cm ($ 4 / MMbtu) or about 20 % less than the spot price at the UK NBP hub.
Backwardation: Backwardation or Normal Backwardation is the opposite market structure from Contango where the price of future contracts are lower than the spot price
But why are future contracts higher than the spot price when in contango.
Another thing to note is that SGX Nifty is a futures contract and hence its movements are more aligned with Nifty Future contract of that specific month rather than Spot price of Nifty.
The reverse, where the price of a commodity for future delivery is lower than the spot price, or where a far future delivery price is lower than a nearer future delivery, is known as backwardation.
The situation where the price of a commodity for future delivery is higher than the spot price, or where a far future delivery price is higher than a nearer future delivery, is known as contango.
Early this year, the six - month futures price for oil was US$ 20 higher than the spot price.
The backwardation contract selling today is lower than the spot price, and its trajectory will take it upward to the spot price when the contract closes.
The Commission of the European Communities, in a report on agricultural commodity speculation, defined backwardation and contango in relation to spot prices: «The futures price may be either higher or lower than the spot price.
A situation in which the futures price (or forward price) of a commodity is higher than the spot price...
Between 2015 and 2040, these prices are projected to be 22 percent lower on average than the spot price at Henry Hub forecasted in last year's AEO 2015 Reference case.
The discount (futures price lower than spot price) indicates that the market participants are bearish on the underlying asset (BTC).

Not exact matches

Rather than being proof of malfeasance by Sears or gullibility on the part of consumers, that the store sold so few tires at a high regular price suggests buyers are perfectly able to spot a good deal.
For traders used to seeing arbitrage plays vanish within seconds, bitcoin futures» rise back to more than $ 1,300 above the spot price a full day after their debut is another testament to the cryptocurrency's unconventional evolution.
The oil market remains in what's known as contango — with the future price of crude trading at a higher level than today's spot price.
Blankfein served in Goldman's top spot for more than 12 years and his tenure features both the 2008 financial crisis (and multimillion - dollar settlements with the government over allegations that Goldman had lied to investors) as well as all - time highs for its stock price.
While spot prices for oil are up more than 50 percent this year, ETFs tracking those markets through derivatives are heavily underperforming.
Precious and Industrial Metals Inflation concerns, geopolitical tensions and interest - rate levels, especially real yields, contributed to a 1.7 % rise in the spot price of gold (to US$ 1,325 per troy ounce), as did swings in the US dollar.1 Gold prices traded within the US$ 1,305 — 1,360 range throughout the period, reached 18 - month highs in March and capped their third straight quarterly gain, a feat not seen since 2011.1 Haven demand was a key support as exchange - traded gold holdings of 2,269 metric tons (mt) neared a five - year high.1 The Fed is widely expected to boost borrowing costs, and investors have been carefully watching the central bank's statements to see whether it targets more rate increases in 2018 than previously projected.
Natural Gas Natural gas futures were among the quarter's key decliners -LRB--7.5 %, to US$ 2.73 per million British thermal units) as production growth outweighed seasonal consumption and higher exports of the fuel.1 Spot prices saw an even larger drop of 20.6 % (to US$ 2.81) as the support of December's weather - related demand spikes faded and a more normal winter pattern developed.1 Natural gas generally took its downward price cues from elevated US production and growth in the natural gas - focused rig count, which increased from 179 to 194 in March alone.2 Despite the price drop, traders remained optimistic given surging US shale - gas exports and a supply deficit that was 20 % larger than the five - year average at March - end, the biggest in four years.3 Moreover, total natural gas inventories of 1.38 trillion cubic feet were nearly 33 % below their year - ago level.3 Meanwhile, the market appeared focused on an anticipated production surge (2018 is projected to be a record growth year for gas supplies) and may have overlooked intensifying demand as US exports increasingly helped drain supplies.
Contango, a market situation in which the spot prices are lower than future prices, encourages traders to store crude oil and profit from selling it at prices higher than the spot market.
With better - than - reported fundamentals, a long history of dividend growth, and undervalued stock price, this firm earns a spot on this month's Dividend Growth Stocks Model Portfolio and is this week's Long Idea.
There the new form factor was the iPhone 5C, but while the industrial design was new, the pricing wasn't: the 5C slotted into the spot where the discontinued iPhone 5 would traditionally have gone — $ 100 less than the new flagship iPhone 5S.
Even though in this example the December - 2016 futures contract is still $ 1 above the spot price, there is a profit to be had because the cost of storage plus the time value of money amounts to significantly more than the $ 1 / barrel futures premium.
The lower the interest rate the smaller the difference will tend to be between the spot price and the prices for future delivery, so in a world dominated by ZIRP (Zero Interest Rate Policy) the differences between spot and futures prices will generally be smaller than usual.
DBC's differentiating factor is mainly that it dynamically picks the futures contracts it holds in an attempt to mitigate contango, which occurs when futures contracts are priced higher than spot with each successive month on the futures curve.
Newcastle spot prices, essentially the global benchmark price for coal, have fallen from a peak of more than $ 140 a ton in early 2011 to less than $ 70 a ton.
So well, in fact, that relative to the Goldman Sachs Spot Commodity Index (GNX) the gold price is at an all - time high and about 30 % higher than it was at its 2011 peak.
While spot prices in April were at levels comparable to those seen in October 2004, long - dated futures prices were close to US$ 10 per barrel higher than in October last year, at around US$ 48.
Futures prices generally move somewhat in response to changes in the spot price, even when movements in the latter are driven by transitory factors, but their substantially lower volatility suggests that they are more anchored to longer - run price fundamentals than are spot prices.
Steel prices soared — spot prices for steel were up more than 60 % four months later.
This is because they will have to sell their expiring contracts near the spot price and buy new contracts at a price higher than the spot.
Contango simply means that investors are willing to pay a premium today to be sure of the price they'll get in the future, rather than waiting a month or quarter and then buying the commodity in the real - time «spot» market.
The price to move up 20 spots into the top - 10 is astronomical, definitely worth more than a borderline 3 - round pick and a disappointing former high pick.
My rental car was towed from its parking spot on the sixth day of the Games and spent the next fortnight in a circle of hell called the ATOW lot, where an employee extorted a sum just less than the car's original sticker price for its safe return.
You have to price and tag it all, but it is great to have so many buyers in one spot (and in my opinion, easier than a garage sale to organize since someone else is doing all the real organizing!).
Unlike a knockoff Gucci purse or Rolex watch, however, it takes more than misspelled brand labels, altered logos or suspiciously low prices to spot a bogus microprocessor being passed off as the real thing.
So here lately I have really been wanting to purchase the Minnetonka Fringe Boots particularly the 5 layers, but the other day I went into Kohl's and spotted a similar pair for less than half the price and I used a giftcard that I had and ended up only coming out of pocket an additional -LSB-...]
When I spotted this asymmetric skirt, I jumped on it because the print is similar to a gorgeous Stella McCartney print for a tiny fraction of the price — it's less than $ 20 actually!
So here lately I have really been wanting to purchase the Minnetonka Fringe Boots particularly the 5 layers, but the other day I went into Kohl's and spotted a similar pair for less than half the price and I used a giftcard that I had and ended up only coming out of pocket an additional $ 7.
But for those who want more out of their car — and their life — than just railing on the limit 24/7, but don't want to succumb to the floating beige coffins of late middle age just yet, the S3's balance of size, price, performance, quality, comfort, and tech hits a perfectly targeted sweet spot.
It unveiled the 2012 Lincoln MKZ with lots of technology, all of it priced more affordably than what you'd pay on German or Japanese luxury sedans: lane keep assist, adaptive cruise control, blind spot warning and cross-traffic (in back) alert, and the next generation (that is, the easier to use generation) of MyLincoln Touch.
It's the sweet spot for owners who need more cabin space than a regular cab model, at a lower price than the Ram Crew Cab, which has full - size rear doors and accommodations.
«The new Regal GS is in the sweet spot of the market: more refined and luxurious than the mainstream, more value for the price with style and premium features on par with higher - end competitors,» said Duncan Aldred, vice president of Buick.
The new Regal GS is in the sweet spot of the market: more refined and luxurious than the mainstream, more value for the price with style and premium features on par with higher - end competitors, and with standard features like AWD with active twin clutch and a rear sportback design that will surprise customers with its usefulness,» said Duncan Aldred, Vice President of Global Buick and GMC.
It's priced a little over $ 2,000 higher than the entry - level Sport, but it nets you blind - spot monitoring and rear cross-traffic alert systems, low - speed pre-collision braking (for driving in congested traffic), a smart keyless entry and ignition system, dual - zone automatic climate control, leatherette upholstery, a power driver's seat, and larger wheels.
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