An intermonth spread involves trading the price difference between futures contracts of the same commodity with different expiration months. Also known as calendar spreads, these strategies profit from changes in the relationship between near-term and deferred contract prices rather than absolute price direction. Intermonth spreads often exhibit different risk characteristics than outright positions.

Intermonth spread relationships reflect storage costs, convenience yields, seasonal patterns, and supply-demand expectations across different time periods. These spreads can indicate market backwardation or contango conditions while providing lower-margin trading opportunities. Understanding seasonal patterns and storage economics is crucial for successful intermonth spread trading.

Real-world example: A trader buys July corn futures and sells December corn futures, profiting from the spread narrowing from $0.30 to $0.15 per bushel as summer weather concerns increase near-term corn prices relative to post-harvest expectations.