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How is the price from undated contracts derived?


Spook1304

Question

Hi, I'm trying to work out how the undated contracts are derived/priced but cant find much information on it.
I've seen a few posts and pages that suggest that the Undated contract price is derived from 2 liquid futures contracts. The link below says that its the two nearest futures contracts (as they tend to be the most liquid) here:

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/products-markets-and-trading-hours/how-are-spot-commodities-priced--and-how-is-my-overnight-funding
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However, @JamesIG advised: "we take the most liquid front month contracts this doesn't necessarily mean this month and next" here:

 

I have some questions:

How can I tell which futures contracts the Undated price is being derived from on any given date? Do you have a formula or show anywhere (on a page or post) what futures contract the undated contract is being based off of? The example that James provided in the post above is pretty clear-cut as the volume and Open Interest is substantially higher than the rest but that's not the case with all instruments.
Using Natural Gas as an example, the JUL24 contract is most liquid but JUN24 has most volume while SEP24 and OCT24 have less volume but similar Open Interest. What futures contracts would the Undated be based off of here?
image.png.adb60f2be6445926fe9bd38164600816.png

For the undated contract, how often is the contract calculated based on the futures? EG, can it be based off of JUN24 and SEP24 today then JUN24 and OCT24 tomorrow? Is it a daily calculation or constant?
 

I've searched the forum for days for the answer and while I've found multiple posts and people asking the same or similar questions, there has never been a definitive answer provided.

Thanks.

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