So I’m aware
Contango: Forward > Spot
Backwardation: Forward< Spot
Normal Contango: Forward > Expected Spot
Normal Backwardation: Forward < Expected Spot
I came across something saying normal contango is a biased predictor of expected spot rates. Does that mean normal backwardation is also biased and regular contango and backwardation are unbiased?
Also is Contango always associated with speculation normal and regular and backwardation associated with hedging normal and regular?
Please help