# What Contango Could Mean for Natural Gas Traders

> Active US natural gas futures are trading at a $0.56 discount to contracts 12 months out, a structure known as contango. The article says contango has historically coincided with weak prices and notes that futures have fallen about 16.6% since the curve flipped in December 2016. It also contrasts this with backwardation, which accompanied strong price periods.

- Date: 2017-02-16 · published 2017-02-16T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/72694-what-contango-could-mean-for-natural-gas-traders
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

A contango curve signals that the market expects soft near-term gas demand, which points to cheaper energy for feed processing. Forward gas-cost expectations remain subdued.

## Read by commodity

- NATGAS: bearish ▼

## Sources

- marketrealist.com: https://marketrealist.com/2017/02/contango-mean-natural-gas-traders/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.