A situation that arises when speculators are willing to pay a futures price that is greater than the expected price of that commodity at the same future point. This is also referred to as a “normal market” or a “carrying-cost market.” The opposite of a contango situation is “backwardation,” when the futures price is below the expected future cost.
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Contango.