"Contango" Pronounce,Meaning And Examples
"Contango" Natural Recordings by Native Speakers
"Contango" Meaning
Contango is a term used in finance, particularly in the energy and commodities markets, to describe a market situation where the price of a commodity or future contract for delivery at a later date is higher than the current price, creating an incentive to buy the commodity and store it until the price increases.
"Contango" Examples
Contango
Contango is a financial term that refers to a market phenomenon where the price of a futures contract is higher than the spot price, and the prices of near-term futures contracts are higher than those of distant-term futures contracts.
Examples:
| Usage | Description |
| --- | --- |
| The oil market experienced contango, causing oil prices to rise due to increased demand. | In this example, contango refers to the market circumstance where oil prices are higher for future delivery than for immediate delivery. |
| Investors were delighted when the gold market went into backwardation, but were initially puzzled by the contango in the oil market. | In this example, contango is contrasted with backwardation, where the market prices of near-term futures contracts are lower than those of distant-term futures contracts. |
| The company's reliance on contango for their oil supply led to significant profits during the period of high demand. | In this example, contango is used to describe a business strategy where a company profits from the difference between the spot price and the futures price of oil. |
| The contango in the agricultural market allowed farmers to profit from storing their crops until the prices increased. | In this example, contango is used to describe how farmers can benefit from storing their crops until the prices rise due to the difference between the spot price and the futures price. |
| The firm's financial analysts had to consider the impact of contango on their calculations for projected oil costs. | In this example, contango is used to describe how the market phenomenon affects the financial projections of a company.
"Contango" Similar Words
Contaminants
Contaminate
Contaminated
The word "contaminated" refers to something that has been damaged or polluted by the presence of something undesirable or harmful, such as a substance, a disease, or a foreign object. It can also describe a situation or environment that is affected by such a presence. For example, "The water supply has been contaminated by industrial waste", or "The defeated city was contaminated by the aggressive invaders". In general, contamination can lead to a loss of purity, quality, or safety.
Contaminates
To contaminate means to make something impure or dirty by adding harmful or unwanted substances to it, such as chemicals, germs, or pollutants. It can also refer to the act of polluting or corrupting something, either physically or morally. For example, "The toxic waste contaminated the groundwater and made it undrinkable."
Contaminating
To contaminate means to make something dirty or polluted, often by introducing something harmful or unwanted. This can apply to physical substances, such as air, water, or soil, as well as concepts, ideas, or people. For example, poisoning a river with chemicals would contaminate its water, making it unsafe for humans and animals to drink. Similarly, spreading false information or harmful stereotypes through social media can contaminate people's perceptions and understanding of a particular group or issue.
Contamination
Contaminations
Contaminations refer to unwanted substances or materials that enter or mix with another substance, often causing harm or altering its purity or quality. This can include physical particles, chemicals, or biological agents that pollute or taint something, such as water, air, soil, or food.
Contaminative
Conte
Contemn
To contemn means to look down on or despise someone or something with disdain or scorn, often with a sense of superiority. It can also mean to disdain or despise something, often implying a lack of respect or esteem.
Contemned
Contemned refers to something or someone that is disdained, despised, or regarded with contempt. It can also describe an action or behavior that is scorned or regarded as foolish or unreasonable.
Contemner
Contemnible
Contemning
Contemperation
Contemplate