1. Total Weekly Volume of 7.78 M tons, +221% WoW change
2. RGGI ICE weekly average settlement price was $14.04, +1.5% WoW.

Quick Summary:

RGGI prices rose $0.1 after the auction. The 56th auction settled at $13.90, a cent below the Cost-Containment Reserve (CCR) of $13.91. The high settlement price, so close to the CCR, indicates a potential reserve breach in the remaining two auctions of this year. If this expectation were to continue the future price will continue to trade near the current price point with low volatility.

RGGI futures increase marginally by $0.1 after auction

Volumes rebound to 7.78 M tons in the auction week 

Volumes rise to 5.58M tons on the day of Auction Results

Market Fundamentals

Trader Positions: 

Managed Money is finally bullish after a month of increasing net-short positions

An analysis of traders’ positions from CFTC data gives us an indication of market sentiments. Compliance entities sold 0.1 M tons of long positions and  0.03 M tons of short positions. Managed money decreased short positions by 0.03M tons and increased long positions by 0.005. A net-long position by managed money and a slightly net-short position by compliance entities.

Compliance Entities decrease both long and short after a massive increase of positions between 22-28th May  

Managed Money decreases long positions and increases long positions, during the auction week. They moved from increasing net-short to net-long.

Analyst: Craig Rocha (cmrocha@californiacarbon.info)