HardAssetsInvestor

CONTANGO WATCH: This week, 2009 strikes back, almost doubling WTI’s five-year average historical average for this date, even as the current roll widened by 0.25 percent.

ROLL COSTS: It costs investors 6.00 percent annualized to roll front-month WTI contracts, up from a cost of 5.74 percent.

BOTTOM LINE: Contango to Backwardation

CONTANGO WATCH: Brent reversed the trend of recent weeks and narrowed its backwardation by almost 2.50 percent this week, while backwardation remains steady across the one-year forward curve.

ROLL COSTS: Investors net 8.66 percent annualized to roll front-month Brent contracts, down from a net of 11.01 percent.

BOTTOM LINE: Backwardation

CONTANGO WATCH: A price difference of a measly 6 cents has sent natural gas skyrocketing; however, the move into deeper contango is in line with the five-year average historical roll cost for this date.

ROLL COSTS: It costs investors 20.75 percent annualized to roll front-month natural gas contracts, up from a net cost of 4.05 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: All three of gold’s statistics are in line this week, despite a very slight widening in the current roll cost.

ROLL COSTS: It costs investors 0.87 percent annualized to roll front-month gold contracts, up from a cost of 0.84 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: While gold usually gets all the press in the wake of reports of U.S. economic data, it’s silver that’s more interesting this time. Reversing last week’s narrowing, silver’s widening contango resulted in the current roll cost doubling this past week.

ROLL COSTS: It costs investors 1.15 percent annualized to roll front-month silver contracts, up from a cost of 0.58 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Platinum has moved out of backwardation into a mild contango this week that’s in line with the five-year average historical roll cost for this date.

ROLL COSTS: It costs investors 0.90 percent annualized to roll front-month platinum contracts, up from a net of 0.73 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Following the trend of the one-year forward curve, palladium has moved out of backwardation into a steady, if mild, contango.

ROLL COSTS: It costs investors 0.72 percent annualized to roll front-month palladium contracts, up from a net of 0.11 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Copper has yo-yoed this week and narrowed by the same 0.30 percent margin that it widened by last week.

ROLL COSTS: It costs investors 1.39 percent annualized to roll front-month copper contracts, down from a cost of 1.66 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Aluminum narrowed by 2.30 percent this week; however, a steady contango remains dominant across the one-year forward curve.

ROLL COSTS: It costs investors 5.69 percent annualized to roll front-month aluminum contracts, down from a cost of 7.99 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Zinc has doubled its current roll cost as we roll into March contracts, moving deeper into contango after holding relatively steady for the past two weeks.

ROLL COSTS: It costs investors 3.51 percent annualized to roll front-month zinc contracts, up from a cost of 1.75 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Lead has narrowed its contango by almost 0.50 percent this week, bringing it in line with the five-year average historical roll cost for this date.

ROLL COSTS: It costs investors 1.73 percent annualized to roll front-month lead contracts, down from a cost of 2.32 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Unlike many industrial metals, nickel’s current roll cost is relatively steady this week, narrowing by a slight 0.07 percent.

ROLL COSTS: It costs investors 1.17 percent annualized to roll front-month nickel contracts, down from a cost of 1.25 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Tin’s trend toward narrowing backwardation has finally moved it into a very mild contango this week.

ROLL COSTS: It costs investors 0.10 percent annualized to roll front-month tin contracts, down from a net of 0.15 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Corn reversed last week’s 0.80 percent drop this week, doubling its contango.

ROLL COSTS: It costs investors 1.23 percent annualized to roll front-month corn contracts, up from a cost of 0.63 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Wheat’s current roll cost narrowed slightly this past week while remaining more than 8 percent below its five-year average historical roll for this date.

ROLL COSTS: It costs investors 6.61 percent annualized to roll front-month wheat contracts, down from a cost of 6.77 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Soybeans narrowed their backwardation by 3.00 percent this week, with the current roll mirroring the contangoed five-year average historical roll for this date.

ROLL COSTS: Investors net 3.38 percent annualized to roll front-month soybeans contracts, down from a net of 6.29 percent.

BOTTOM LINE: Backwardation

CONTANGO WATCH: Live cattle have plunged into backwardation, dropping almost 42.00 percent from last week.

ROLL COSTS: Investors net 18.48 percent annualized to roll front-month live cattle contracts, up from a cost of 23.09 percent.

BOTTOM LINE: Backwardation

CONTANGO WATCH: As contracts roll into March, lean hogs have widened their contango by more than 160 percent this past week, moving into the steep contango that’s typical this time of year.

ROLL COSTS: It costs investors 176.51 percent annualized to roll front-month lean hogs contracts, up from a cost of 15.42 percent.

BOTTOM LINE: Steep Contango to Backwardation

CONTANGO WATCH: Coffee widened its contango by just over 1 percent this past week, bringing the current cost to more than 3 percent above the five-year average historical roll cost for this date.

ROLL COSTS: It costs investors 12.58 percent annualized to roll front-month coffee contracts, up from a cost of 11.43 percent.

BOTTOM LINE: Contango

CONTANGO WATCH: Cocoa has dropped into a mild backwardation this week; however, contango remains dominant across the one-year forward curve, so the drop is not expected to last.

ROLL COSTS: Investors net 0.27 percent annualized to roll front-month cocoa contracts, up from a cost of 2.76 percent.

BOTTOM LINE: Mild Backwardation

CONTANGO WATCH: Sugar’s downward slope has ended, moving back into a mild contango this week.

ROLL COSTS: It costs investors 0.32 percent annualized to roll front-month sugar contracts, up from a net of 0.32 percent.

BOTTOM LINE: Mild Contango

CONTANGO WATCH: Cotton has shot out of backwardation with a bang, moving more than 5 percent upward from last week into a firm contango.

ROLL COSTS: It costs investors 4.46 percent annualized to roll front-month cotton contracts, up from a net of 0.81 percent.

BOTTOM LINE: Contango