When spot is above contract there is a squeeze on immediate supply. The contract price reflects future supply when the pond plants have been built and are in operation.
Do you want one hamburger today or two hamburgers tomorrow. If you are hungry you will take one hamburger. Pretty normal in the commodity space.
Of course spot is not contract - they are opposite concepts. But 15 months forward gives a pointer to price setting.
When spot is above contract there is a squeeze on immediate...
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