1. Total Weekly Volume of 3.62 M tons +63.5% WoW change
2. RGGI ICE weekly average settlement price was $13.97, +0.25% WoW.
3. Managed Money increases net-short positions by 0.33 M tons.

Quick Summary:

RGGI’s futures prices edged slightly upwards (+0.25%). The FED rate hike early last week resulted in a decline in RGGI prices, the allowances have now recouped most of the decline. The prices are now at the June 1st auction settlement price.

RGGI price fall after high auction settlement price

Weekly RGGI Volumes increase (+62.5% WoW)

Trader Positions: 

Compliance entities increase net long positions and Managed Money increase net-short positions 

An analysis of traders’ positions from CFTC data gives us an indication of market sentiments. Open interest increased by 0.11 M tons, compliance entities net long increased by 0.09M tons and managed money net-short increased by 0.33 M tons.

WoW Change in Positions 

Compliance Entities (Net Long: 0.09 M tons ):
Decreased long positions by 0.009 M tons 
Decreased short positions by 0.1 M tons.

Managed Money (Net Short:0.33 M tons ):
Increased long positions by 0.13 M tons 
Increased short positions by 0.46 M tons.

The RGGI  remains strong despite a very pessimistic bear market. The FED interest rate hike had little impact on the RGGI prices, with prices rebounding quickly. The Cost Containment Reserve continues to determine the price range of the commodity.

Analyst: Craig Rocha (cmrocha@californiacarbon.info)