August 9, 2022 by Megha Jha
The RGGI showed a small bounceback, after the delivery of the Jul22 contract. The front’s fall to $13 on the date of expiry, indicating that the actual price, entities are willing to pay at the moment for ownership is $13. Ahead of the upcoming auction, this delivery is an indicator of where the auction might settle.
Weekly RGGI Volumes Decline (-50% WoW)
Managed Money increase short positions
An analysis of traders’ positions from CFTC data gives us an indication of market sentiments. OI declines by 3.5 Million, as swap contracts decline after Jul22 expiry. Long positions by compliance entities declined by 1.5 M tons, and compliance long by 3.3 M tons.
Total Positions (Positions on 2nd August)
Compliance Entities (Net Long Increased: 0.50 M tons):
Managed Money (Net Long increased: 1.0 M tons):