A deferred month refers to futures contract delivery months that are further in the future compared to the nearby or front month contracts. Deferred contracts typically trade at different prices than near-term contracts due to storage costs, interest rates, seasonal factors, and supply-demand expectations. These contracts provide hedging and speculation opportunities for longer-term price exposure.

Deferred month contracts often exhibit different volatility characteristics and may respond differently to market news compared to front month contracts. The price relationship between deferred and nearby contracts (known as the forward curve structure) provides insights into market expectations about future supply, demand, and seasonal patterns.

Real-world example: While March crude oil futures trade at $75 per barrel, the deferred December contract trades at $78, reflecting expected storage costs and potential supply tightness later in the year.