Contango (Part II): CNBC Explains

12:00 AM ET Sun, 29 May 2011

Contango may seem daunting to those new to the market or unfamiliar with futures contracts, but it doesn't have to be. Simply put, contango occurs in a market when futures prices for a commodity are greater than the current spot price. Severe Contango can send distinct signals to the market. Salman Khan illustrates.