Carrying charges - The cost of storing a physical commodity, consisting of interest on the invested funds, insurance, storage fees, and other incidental costs. Carrying costs are usually reflected in the difference between futures prices for different delivery months. When futures prices for deferred contract maturities are higher than for nearby maturities, it is a carrying charge market. A full carrying charge market reimburses the owner of the physical commodity for its storage until the delivery date.
Carrying charges : the cost of storing a physical commodity, consisting of interest on the invested funds, insurance, storage fees, and other incidental costs. carrying costs are usually reflected in the difference between futures prices for different delivery months. when futures prices for deferred contract maturities are higher than for nearby maturities, it is a carrying charge market. a full carrying charge market reimburses the owner of the physical commodity for its storage until the delivery date.
Carrying charges