Commodity Forward Curves Interview Guide
Commodity forward curves interview guide covering curve shape, contango, backwardation, seasonality, rolls, examples, and risk.
Candidates analyzing futures curves, storage, and roll effects.
Commodity curves reflect delivery months
A commodity futures curve shows prices for different contract expiries, each tied to delivery timing, storage, and market expectations.
Shape can vary by commodity
Energy, metals, agriculture, and power markets can have very different seasonality, storage, and delivery constraints across contract months.
Concrete example
Natural gas may show strong winter-summer differences because heating demand, storage injection, and withdrawal seasons affect contract months.
Roll exposure matters
A strategy holding futures must roll from one contract to another, so returns can depend on curve shape and roll timing.
Common mistakes
Candidates often interpret the curve as a direct forecast. It also reflects carry, storage, risk premia, and market constraints.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.