Cash–3M contango widens as conditions eased after March.
The LME Cash–3M contango widened to $23.00 from Friday’s one-week low of $21.25 per mton. The March–April contango eased to $9.50 from $9.25 per mton, the April–May contango widened to $6.00 from $5.25 per mton, and the May–3M contango eased to $4.50 from $2.75 per mton. As a result, we estimate that the Cash–3M contango could be attractive for cash-and-carry deals only for the most competitive players. (i.e., those with access to the lowest financing and storage costs).