Broker Spot CCA:$14.81 (-0.1%) Broker OTC CCA:V2018 Dec 18 $15.25 (-0.1%);V2019 Dec 19$15.76 (-0.3%) ICE CCA:V2018 Front$14.81(-0.2%);V2018 Dec 18$15.24 (-0.2%);V2018 Dec 19$15.77 (-0.3%) ICE OCA: V2018 Dec 18 CAD $19.16(-0.3%) Broker CCO 2018 Delivery:CCO8$12.36 (-0.1%)CCO3$13.08 (-0.1%)Golden$13.82 (0%) Broker CRT 2018 Delivery:Forestry $11.60 (0%)ODS$11.60 (0%)Livestock$11.60 (0%)
OFFSET COUNTERS All CCOs: 92,229,662 (11,431,336 buffered; 88,955 invalidated; 21,710,534 retired; 8,638,173 in compliance accounts) Quebec offsets: 563,993 Offsets surrendered for compliance obligations of Quebec entities: 298,812 WCI Offsets available for future compliance: 60,084,120 All CCO-3s: 32,455,5688 (3,351,198 buffered) CCO-0s: 17,359,708 (1,741,132 buffered) Credited EA projects: 128 Credited compliance projects: 215 (of 391 listed, including 240 registered) ROCs awaiting ARBOC issuance: 44,402,494ROCROC
Weekly Price Commentary
Market reverts back to pre-auction tendencies with low liquidity
As Joint Auction 14 is looming the California Carbon Allowance market is going back to its pre-auction tendencies with low volumes and a drop in front price and benchmark. The week started off with a 4-cent drop on average however intraday volatility was high so price drop ranged from 3-cents to 7-cents across the forward curve. The following day most deliveries did not see a price change however, the front further dropped 2-cents while V18 Dec 21 delivery gained a cent. On Friday (02/16) prices bounced back by 3-cents, a uniform gain across all deliveries. Over the week, front (V18 Feb18) dropped 3-cents and currently stands at USD 14.81, trading 28-cents above price floor. Benchmark (V18 Dec18) mirrors front price with a 3-cent weekly drop as well and is currently trading at USD 15.24. Past month’s price movements are shown the graph below.
Offset Scorecard: Low volumes cleared in latest issuance
After a large issuance of over 4.5million CCOs at the end of January, February’s first issuance saw only 96,499 CCOs issued. The total supply of WCI offsets available for compliance now totals just over 60 million.
The largest issuance this week was to The Nature Conservancy’s Rich Mountain Forestry Project in Virginia, which received 51,354 CCOs – 53% of the total issuances. Interestingly, this was the only forestry project to receive CCOs this week.
The other credits were awarded to livestock projects. Camco’s Woodland Dairy Digester received 6,193 V17 CCOs for its first reporting period. Camco’s Central Sands Dairy LLC received 16,242 credits in its second reporting period. Finally, Ag Methane Advisors and Farm Power Nothwest’s livestock projects were awarded 13, 363 and 9,346 CCOs, respectively.
For more information on the methodology used in computing price data, please visit our website.
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