The Collaborative International Dictionary
Backwardation
Backwardation \Back`war*da"tion\, n. [Backward, v. t. + -ation.]
(Stock Exchange)
The seller's postponement of delivery of stock or shares,
with the consent of the buyer, upon payment of a premium to
the latter; -- also, the premium so paid. See Contango.
--Biddle.
Wiktionary
backwardation
n. (context finance English) The situation in a futures market where prices for future delivery are lower than prices for immediate (or nearer) delivery. Generally arising from a near-term shortage of a commodity.