What is the meaning of Normal backwardation theory?

Holds that the futures price will be bid down to a level below the expected spot price.

Barry Goldsmith
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APABarry Goldsmith. (2010). normal backwardation theory. Retrieved September 24, 2026, from http://smartdefine.org/normal_backwardation_theory/definitions/1159325
ChicagoBarry Goldsmith. 2010. "normal backwardation theory" http://smartdefine.org/normal_backwardation_theory/definitions/1159325 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, normal backwardation theory, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/normal_backwardation_theory/definitions/1159325>.
MLABarry Goldsmith. "normal backwardation theory" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/normal_backwardation_theory/definitions/1159325>