31 March 2024

IN CLEAR VIEW /IN PLAIN SIGHT. . .could be a sign the global economy is facing some trouble | @Barchart

 Some comments: 

Whut … How can contango spell trouble ?


Why would a higher futures price over spot (contango) spell trouble for the economy? Seems it reflects an expectation of higher demand(?) Help me out here.

Traders are betting some copper smelters will have to slow and/or stop production which will reduce supplies. This is less about demand and more about lower production impacting the supply chain.

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