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Week In Review: Gold Pullback Toward $1,322 Begins, NatGas Tests First Layer Of Support, Oil Falls, Copper Rises
***Top stories from the last 15 days
- August 13, 2012
Contango Report: NatGas Contango Widens Significantly, Brent Roll Yield Tops 18%
- Details
3.65%
Annualized Cost 1 Week Previous
3.35%
Historical 08/10 5YR Annualized Roll
11.65%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: WTI is in contango through most of the one-year forward curve.
ROLL COSTS: The front-month roll rose to 3.65 percent annualized, up slightly from 3.35 percent.
BOTTOM LINE: Contango
-18.38%
Annualized Cost 1 Week Previous
-13.68%
Historical 08/10 5YR Annualized Roll
2.36%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: Brent’s backwardation widened again last week.
ROLL COSTS: Investors net 18.38 percent annualized from rolling front-month Brent contracts, up from a net of 13.68 percent.
BOTTOM LINE: Backwardation
16.83%
Annualized Cost 1 Week Previous
1.26%
Historical 08/10 5YR Annualized Roll
35.94%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: The natural gas contango widened notably last week as prices sold off. With only a month of summer remaining and cooler-than-normal temperatures forecast for the next two-week period, it’s likely natural gas will remain in contango, at least in the near term.
However, even at current levels, roll costs in natural gas are fairly negligible for short-term holders. The front-month roll, for example, is close to $0.04/mmbtu—relatively small for one of the most volatile commodities.
ROLL COSTS: It costs investors 16.83 percent annualized to roll front-month natural gas contracts.
BOTTOM LINE: Contango
0.74%
Annualized Cost 1 Week Previous
0.86%
Historical 08/10 5YR Annualized Roll
1.10%
Contract Months:
Feb Apr Jun Aug Oct Dec
CONTANGO WATCH: Gold is in mild contango.
ROLL COSTS: It costs investors 0.74 percent annualized to roll front-month gold contracts, down a bit from 0.86 percent.
BOTTOM LINE: Mild Contango
1.22%
Annualized Cost 1 Week Previous
0.58%
Historical 08/10 5YR Annualized Roll
1.51%
Contract Months:
Jan Mar May Jul Sep Dec
CONTANGO WATCH: Silver is in mild contango throughout most of the forward curve.
ROLL COSTS: It costs investors 1.22 percent annualized to roll front-month silver contracts, up from 0.58 percent.
BOTTOM LINE: Mild Contango
0.63%
Annualized Cost 1 Week Previous
0.60%
Historical 08/10 5YR Annualized Roll
1.30%
Contract Months:
Jan Apr Jul Oct
CONTANGO WATCH: Platinum is in mild contango at the front end of the forward curve.
ROLL COSTS: It costs investors 0.63 percent annualized to roll front-month platinum contracts.
BOTTOM LINE: Contango
1.10%
Annualized Cost 1 Week Previous
0.31%
Historical 08/10 5YR Annualized Roll
1.56%
Contract Months:
Mar Jun Sep Dec
CONTANGO WATCH: Palladium is in mild contango at the very front end of the curve.
ROLL COSTS: It costs investors 1.1 percent annualized to roll front-month palladium contracts, up from a cost of 0.31 percent.
BOTTOM LINE: Mild Contango
0.28%
Annualized Cost 1 Week Previous
0.16%
Historical 08/10 5YR Annualized Roll
-0.60%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: Copper is in mild contango across the one-year forward curve.
ROLL COSTS: It costs investors 0.28 percent annualized to roll front-month copper contracts, up from 0.16 percent.
BOTTOM LINE: Mild Contango
8.20%
Annualized Cost 1 Week Previous
4.65%
Historical 08/10 5YR Annualized Roll
6.83%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: The aluminum forward curve is in steady contango.
ROLL COSTS: Front-month annualized roll costs moved up to 8.2 percent from 4.65 percent the week before.
BOTTOM LINE: Contango
4.02%
Annualized Cost 1 Week Previous
2.65%
Historical 08/10 5YR Annualized Roll
5.11%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: Zinc is in contango across the one-year forward curve.
ROLL COSTS: It costs investors 4.02 percent annualized to roll front-month zinc contracts, up from a cost of 2.65 percent.
BOTTOM LINE: Contango
1.44%
Annualized Cost 1 Week Previous
3.72%
Historical 08/10 5YR Annualized Roll
1.41%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: Lead is in contango across the one-year forward curve.
ROLL COSTS: It costs investors 1.44 percent annualized to roll front-month lead contracts, down from a cost of 3.72 percent.
BOTTOM LINE: Mild Contango
1.65%
Annualized Cost 1 Week Previous
1.47%
Historical 08/10 5YR Annualized Roll
1.25%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: Nickel is in mild contango throughout the forward curve.
ROLL COSTS: Roll costs for nickel edged up to 1.65 percent from 1.47 percent.
BOTTOM LINE: Mild Contango
-0.13%
Annualized Cost 1 Week Previous
0.67%
Historical 08/10 5YR Annualized Roll
-2.03%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: The tin forward curve is in mild backwardation at the front end of the curve and in mild contango thereafter.
ROLL COSTS: Investors net 0.13 percent annualized from rolling front-month tin contracts, up from a cost of 0.67 percent.
BOTTOM LINE: Mild Backwardation to Mild Contango
4.88%
Annualized Cost 1 Week Previous
-0.25%
Historical 08/10 5YR Annualized Roll
10.54%
Contract Months:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CONTANGO WATCH: Corn is in contango at the front end of the curve.
ROLL COSTS: It costs investors 4.88 percent annualized to roll front-month corn contracts, down from a net of 0.25 percent.
BOTTOM LINE: Contango
7.80%
Annualized Cost 1 Week Previous
6.13%
Historical 08/10 5YR Annualized Roll
17.07%
Contract Months:
Mar May Jul Sep Dec
CONTANGO WATCH: Wheat’s contango widened last week.
ROLL COSTS: Wheat’s annualized front-month roll costs rose to 7.8 percent from 6.13 percent.
BOTTOM LINE: Contango to Backwardation
-10.31%
Annualized Cost 1 Week Previous
-4.14%
Historical 08/10 5YR Annualized Roll
-6.71%
Contract Months:
Jan Mar May Jul Aug Sep Nov
CONTANGO WATCH: Soybeans’ backwardation widened as prices rallied last week.
ROLL COSTS: Investors net 10.31 percent annualized from rolling front-month soybeans contracts, up from a net of 4.14 percent.
BOTTOM LINE: Backwardation
14.82%
Annualized Cost 1 Week Previous
14.83%
Historical 08/10 5YR Annualized Roll
7.21%
Contract Months:
Feb Apr Jun Aug Oct Dec
CONTANGO WATCH: The live cattle curve is in contango across most of the one-year forward curve.
ROLL COSTS: It costs investors 14.82 percent annualized to roll front-month live cattle contracts.
BOTTOM LINE: Contango
-15.57%
Annualized Cost 1 Week Previous
-14.12%
Historical 08/10 5YR Annualized Roll
-13.03%
Contract Months:
Feb Apr May Jun Jul Aug Oct Dec
CONTANGO WATCH: The front half of the lean hogs forward curve is in backwardation.
ROLL COSTS: Investors net 15.57 percent annualized from rolling front-month lean hogs contracts, up slightly from a net of 14.12 percent.
BOTTOM LINE: Backwardation to Contango
7.45%
Annualized Cost 1 Week Previous
6.30%
Historical 08/10 5YR Annualized Roll
7.82%
Contract Months:
Mar May Jul Sep Dec
CONTANGO WATCH: Coffee is in contango throughout the one-year forward curve.
ROLL COSTS: Annualized front-month roll costs rose to 7.45 percent from 6.30 percent.
BOTTOM LINE: Contango
2.47%
Annualized Cost 1 Week Previous
1.52%
Historical 08/10 5YR Annualized Roll
3.79%
Contract Months:
Mar May Jul Sep Dec
CONTANGO WATCH: Cocoa is in contango throughout the one-year forward curve.
ROLL COSTS: It costs investors 2.47 percent to roll front-month cocoa contracts, up from a cost of 1.52 percent.
BOTTOM LINE: Contango
5.40%
Annualized Cost 1 Week Previous
4.76%
Historical 08/10 5YR Annualized Roll
5.38%
Contract Months:
Mar May Jul Oct
CONTANGO WATCH: Sugar is in contango at the front end of the curve.
ROLL COSTS: It costs investors 5.4 percent annualized to roll front-month sugar contracts, up from a cost of 4.76 percent.
BOTTOM LINE: Contango to Backwardation
2.75%
Annualized Cost 1 Week Previous
6.97%
Historical 08/10 5YR Annualized Roll
2.19%
Contract Months:
Mar May Jul Oct Dec
CONTANGO WATCH: Cotton is in contango throughout the one-year forward curve.
ROLL COSTS: It costs investors 2.75 percent annualized to roll front-month cotton contracts, down from a cost of 6.97 percent.
BOTTOM LINE: Contango
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