Not sure if this is correct but this my understanding.
I have a beer fund to buy slabs each month. This month it cost $25 to buy a slab (contract) but next month it's going to cost me $35 to buy a slab. So it's costing the beer fund $10 more to buy the next months slabs (the next contract) (contango effect) making a loss to the beer fund.
Cheers
OOO Price at posting:
$19.36 Sentiment: None Disclosure: Not Held