1A situation in which the spot or cash price of a commodity is higher than the forward price.
〔股票〕〈英〉现货升水，现货溢价。常与CONTANGO 相对
the development of a backwardation is associated with supply shortage
Often contrasted with contango
Example sentencesExamples
This caused a significant disturbance in the market and exacerbated a backwardation in the price of tin.
Contrary to those teachings, the normal condition of the futures markets is one of contango, not backwardation.
In the case of agricultural commodities backwardation provides a most powerful incentive for traders to sell the cash commodity and buy the futures.
Ministers have announced plans to cut production before prices start to weaken, helping to create the conditions for a sustained price backwardation, pricing physical oil at a premium to future supplies.
1.1A situation in which the offer price for stock is lower than the bid.
〔股票〕〈英〉现货升水，现货溢价。常与CONTANGO 相对
Example sentencesExamples
I am sure that your position is a hedge, but if your physical metal is delayed, you may have to borrow at this backwardation.
One analyst said the falling price of nickel would come as a relief to U.S. buyers who recently had to deal with a steep backwardation that squeezed short positions.
The backwardation widened to $28.50 per tonne in aftermarket trading late Wednesday.
There has been no damage to the oil fields, but the oil market remains very tight as evidenced by the recent move into backwardation.
Gold remains in backwardation right out to the six month term but at low rates.
1.2historical A percentage paid by a person selling stock for the right of delaying its delivery.