LME April–May tightness continues to ease, supporting the widest Cash–3M contango in two weeks
March 23, 2019
The LME Cash–3M contango widened to $26.25 from yesterday’s $26.00 per mton, mainly as the April-May contango widened to a two-week peak of $6.00 from $5.50 per mton (as the May 7–10 backwardation eased to $3.00 from $3.50 per mton). Meanwhile, the Cash–April contango tightened to $11.25 from $11.75 per mton, and the May–June contango stood without a change from yesterday at $9.25 per mton. Thus, the Cash–3M contango is now wide enough for most players to profitably finance short-term cash-and-carry deals (supportive for spot premiums).
More details in full report.