Distant Delivery Pops In Heavy OTC Volume

摘要

Central Appalachian coal for delivery in 2005 popped higher in heavy volume in the over-the-counter market today, as the steep discount to more prompt deliveries made the calendar 2005 rail and barge market look relatively cheap. This backwardation of as much as 4 dollars came in during the day, only to spread out again with a higher 2004 trade. "The spread between '04 and '05 was so wide that it had to work itself out," one broker said. "After the cal '05s traded 41.25 and 41.40, the market is now 41.60 dollars-43.00 dollars, but back-half '04 CSX -1 percent then traded 45.50 dollars, so the spread is still just as wide, even with the up tick."