Hi guys, Hoping some experts on Futures pricing out there could...

Hi guys,

Hoping some experts on Futures pricing out there could help me out a little.

Noticed today that the Zinc futures curve appears to be on backwardation where as all other bases metals and in Contango (I think I am got this the right way round).

Zinc - Backwardation

Nickel - Contango

Copper - Contango

Lead - Contango


Definitely no expert, however my understanding is backwardation indicates a lack of current supply available, so the spot is higher than the future price.

Personally, I find this a little weird as the real constraint is more likely I'm future years, but that's what a few things I have read says anyway.

Obviously I would appreciate being corrected about the above, but now my question.

The cancelled warrants for Zinc is currently sitting at only 25K, which I believe is quite low and I given I would generally expect it higher in a bullish environment, it appears the converse is true.

As you can see, I'm just trying to get my head around futures dynamics, however clearly confusing myself...

Your assistance is greatly appreciated.