HardAssetsInvestor

CONTANGO WATCH: The front half of the one-year WTI forward curve is in contango, while the back half is in backwardation.

ROLL COSTS: It costs investors 4.14 percent annualized to roll front-month WTI contracts, up from 3.70 percent.

BOTTOM LINE: Contango to Backwardation

CONTANGO WATCH: Brent’s backwardation widened last week.

ROLL COSTS: Investors net 7.48 percent annualized from rolling front-month Brent contracts, up from a net of 5.42 percent.

BOTTOM LINE: Backwardation

CONTANGO WATCH: The natural gas contango widened, remaining in steep contango as is typical during this time of the year. Roll costs for natgas are significant through the January contract month, after which they level off. The front-month October contract is currently near $2.86/mmbtu, while the January contract trades at $3.48.

Thus, even if prices were to rise to the mid-$3.50’s over the next few months, investors in a product such as the United States Natural Gas Fund (UNG)—which holds front-month futures—may not profit at all.

ROLL COSTS: It costs investors 112.26 percent annualized to roll front-month natural gas contracts.

BOTTOM LINE: Steep Contango

CONTANGO WATCH: Gold is in mild contango.

ROLL COSTS: It costs investors 0.82 percent annualized to roll front-month gold contracts, down from a cost of 0.95 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Silver is in contango at the front end of the forward curve.

ROLL COSTS: It costs investors 4.53 percent annualized to roll front-month silver contracts, up from a net of 4.74 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Platinum is in mild contango at the front end of the forward curve.

ROLL COSTS: It costs investors 1 percent annualized to roll front-month platinum contracts, up from a cost of 0.66 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Palladium is in mild backwardation at the very front end of the curve and contango thereafter.

ROLL COSTS: It costs investors 7.67 percent annualized to roll second-month palladium contracts, up from a cost of 4.43 percent.

BOTTOM LINE: Mild Backwardation to Contango

CONTANGO WATCH: Copper is in mild contango and mild backwardation throughout the one-year forward curve.

ROLL COSTS: It costs investors 0.22 percent annualized to roll front-month copper contracts, down from a cost of 0.79 percent.

BOTTOM LINE: Mild Contango to Mild Backwardation

CONTANGO WATCH: The aluminum forward curve is in steady contango.

ROLL COSTS: The front-month roll costs rose to 8.61 percent annualized, up slightly from a cost of 8.61 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Zinc is in contango across the one-year forward curve.

ROLL COSTS: It costs investors 7.55 percent annualized to roll front-month zinc contracts, down a bit from 7.69 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Lead is in contango across most of the one-year forward curve.

ROLL COSTS: It costs investors 3.6 percent annualized to roll front-month lead contracts, up from a cost of 2.54 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Nickel is in mild contango throughout the forward curve.

ROLL COSTS: Roll costs for nickel edged up to 1.13 percent from 0.88 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: The tin forward curve is in mild backwardation at the front end of the curve and flat thereafter.

ROLL COSTS: Investors net 1.43 percent annualized from rolling front-month tin contracts, up from a net of 0.83 percent.

BOTTOM LINE: Mild Backwardation to Flat

CONTANGO WATCH: Corn is in mild contango at the front end of the curve.

ROLL COSTS: It costs investors 1.62 percent annualized to roll front-month corn contracts, down from a cost of 2.10 percent.

BOTTOM LINE: Mild Contango to Backwardation

CONTANGO WATCH: Wheat’s contango narrowed slightly last week.

ROLL COSTS: Wheat’s annualized front-month roll costs fell to 4.55 percent from 5.16 percent.

BOTTOM LINE: Contango to Backwardation

CONTANGO WATCH: Soybeans is in mild contango at the front end of the curve and backwardation thereafter.

ROLL COSTS: It costs investors 0.28 percent annualized to roll front-month soybeans contracts, down from a cost of 0.62 percent.

BOTTOM LINE: Mild Contango to Backwardation

CONTANGO WATCH: The live cattle curve is in contango across most of the one-year forward curve.

ROLL COSTS: It costs investors 14.96 percent annualized to roll front-month live cattle contracts, up from a cost of 14.37 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: The front end of the lean hogs forward curve is in backwardation.

ROLL COSTS: Investors net 6.36 percent annualized from rolling front-month lean hogs contracts, up from a net of 1.01 percent.

BOTTOM LINE: Backwardation to Contango

CONTANGO WATCH: Coffee is in contango throughout the one-year forward curve.

ROLL COSTS: It costs investors 9.78 percent annualized to roll front-month coffee contracts, up from a cost of 8.58 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Cocoa is in contango across most of the one-year forward curve.

ROLL COSTS: It costs investors 2.61 percent annualized to roll front-month cocoa contracts, up from a cost of 2.17 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Sugar is in contango at the front end of the curve.

ROLL COSTS: It costs investors 9.06 percent annualized to roll front-month sugar contracts, down from a cost of 9.50 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Cotton is in contango throughout the one-year forward curve.

ROLL COSTS: It costs investors 9.77 percent annualized to roll front-month cotton contracts, up from a cost of 3.66 percent.

BOTTOM LINE: Contango