[Verse 1] Markets pulse with wheat and gold Oil drums spinning futures told Energy, metals, crops, and meat Four kingdoms where traders meet Agriculture feeds the world's demand Livestock roaming across the land Precious metals gleaming bright Crude oil flowing day and night [Chorus] Contango falls while backwardation climbs Roll return dancing through market times Spot plus collateral equals your gain Three returns flowing through futures chain Remember the sectors, remember the flow Energy, metals, agriculture's glow Livestock grazing, prices swing Commodity wisdom that futures bring [Verse 2] When curves slope down, backwardation's here Immediate scarcity costs you dear But when tomorrow costs more than today Contango's curve shows storage pay Insurance premiums hedge the risk Theory of storage makes prices brisk Hedging pressure shifts the scale Supply and demand tell the tale [Chorus] Contango falls while backwardation climbs Roll return dancing through market times Spot plus collateral equals your gain Three returns flowing through futures chain Remember the sectors, remember the flow Energy, metals, agriculture's glow Livestock grazing, prices swing Commodity wisdom that futures bring [Bridge] Indices rolling month by month Methodology's careful hunch Physical barrels, paper trades Equity exposure, different grades Construction matters, weights align Rolling forward down the line [Verse 3] Three exposures paint the scene Physical goods and futures lean Equity shares in mining stocks Each approach has different rocks Storage costs and convenience yield Shape the prices that markets wield GSCI, Bloomberg weigh the game Index construction's not the same [Outro] Four sectors spinning round and round Energy, metals, safe and sound Agriculture, livestock too Futures knowledge pulling through Contango, backwardation's call Roll returns connect them all
← Real Estate Index Construction and Limitations | What Are Commodities? →