Pronunciation: [kəntˈaŋɡə͡ʊz] (IPA) 
The spelling of the word "Contangoes" can be a bit tricky to decipher. IPA phonetic transcription can help make sense of the word, which is commonly used in the financial industry. It is pronounced as kənˈtæŋɡoʊz, with emphasis on the second syllable. The word refers to the cost of carrying a commodity over a period of time, and it is often used in futures trading. The plural form of the word is created by adding -es at the end.
Contangoes refers to the plural form of the noun "contango," which is a financial term used in commodities trading and futures markets. Contango is the situation when the future price of a commodity or financial instrument is higher than its spot price or current market value. The futures market operates on the principle of forward pricing, where contracts are entered into to buy or sell an asset at a pre-determined price and date in the future.
In a contango situation, the cost of carrying or storing the asset until the contract's expiration is factored into the higher future price. This situation typically arises when there is a perception of a future supply shortage or when market participants are willing to pay a premium to secure future supply. It may also occur when interest rates are relatively high, as the cost of financing the purchase of the asset until the contract's maturity adds to the future price.
Contangoes can have various implications for market participants. For those who hold long positions, it means incurring costs for storing or holding the asset over time. For investors or speculators seeking to profit from contango, they might engage in strategies like buying the asset at spot prices and selling futures contracts. Additionally, contango can also be an incentive for producers or suppliers to store extra inventory, as they can sell futures contracts at higher prices. Overall, contangoes are a crucial consideration for traders, investors, and businesses engaged in futures markets or those affected by movements in spot and future prices of commodities or financial instruments.
