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What do declining spot rates suggest?

Updated: 9/13/2023
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9y ago

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Spot rates are prices quoted for the immediate settlement, or cost to buy, on some sort of commodity or security. If it's declining, it means buyers are not willing to pay as much, or sellers are more willing to go lower, or both. It suggests something isn't wanted as much, or possibly that so much is being produced that it won't be sold for as much.

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