Reality of Inflation: Almost every commodity is in extreme backwardation, 10y breakeven inflation is less than 3%, US Dollar Index is up 15+% YoY
by lulzcakes Backwardation A commodity’s spot price trading lower higher than some given future contract is, in cases, normal (e.g. seasonality or perishable commodities). The backwardation we are seeing today is extreme by any standards. [Sorry, typo. Backwardation is spot > future. Although …
