Skip to content
Subscriber Only

Deepest Backwardation Since ‘07 Shows World Short on Commodities

  • Demand for materials from oil to copper and grains is surging
  • Supply tightness comes as economies emerge from the pandemic
Video player cover image
Higher Oil Prices May Not Impact Consumption

For an idea of exactly how strong the fundamentals are for commodities such as metals, agriculture and oil today, consider this: These markets are now showing the steepest backwardation in more than 14 years.

That is, the premium for commodities that can be delivered now versus later into the future is the highest it has been since at least 2007, signaling just how strong the world’s demand is for raw materials and how tight supplies are.