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EUA Financial Indicators Show Mixed Signals

EMISSIONS

Financial indicators in the EUA market are suggesting mixed signals with the latest investment funds net short positioning in EUA futures turning the most bullish since mid-October, while the total futures trading volume and auction cover ratio decline in May and put volumes in the options market are 100% higher than calls.


  • Investment Funds net short position decreased by 7.33m to -6.68m – lowest since mid-October, according to the latest COT data.
  • Trading volumes on total put options are double that of call options, suggesting bearish sentiment.
  • Total EUA futures trading volume declined in May to 33 million allowances per day, down from around 45 million allowances per day in April, but up on the year.
  • The EUA auction cover ratio in May fell to an average of 1.64 this month, down from 1.73 in April and below levels seen in the past two years.

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