Cash–3M contango widens further (supportive for spot premiums around the world)
March 12, 2019
The LME Cash–3M contango widened to a three-week high of $30.25 from Friday’s $27.50 per mton, as the Cash-March contango eased to $3.00 from $0.75 per mton, while the May–3M contango widened to $8.00 from $5.50 per mton. As a result, the Cash–3M contango is now wide enough for most players to profitably finance short-term cash-and-carry deals (supportive for spot premiums). However, the presence of a dominant warrant holder and concentrated futures positions continue to indicate risks of tighter spreads.
More details in full report.