Weekly Carbon Outlook – 27 Nov 2017

November 27, 2017 by Abhilasha Fullonton

(See below to download report)

Trading Report

  • CCA prices saw a 10-cent drop throughout the week. The current front (V17 Nov 17) and benchmark (V17 Dec 17), closed the week at USD 15.13 and USD 15.15, respectively.
  • OCA front and the benchmark prices now stand at CAD 19.19 and CAD 19.24, respectively.
  • OI creation was marginal, having an overall negative net change of 272,000 contracts
  • The traded volumes have increased from 7,328,000 tons to 7,360,000 tons

Price Expectations

  • Momentum to remain level in the short run as price discovery from auction falls in line with prior expectations
  • Traded volume set to rise as spot volume increases after auction and Dec17 changes to front
  • Ontario linkage and February auction could drive prices over USD15.30

CCO Tracker

  • 1.04 million CCOs were approved by ARB in the latest issuance from six projects– 3 forestry and 3 livestock
  • A Livestock project and three Forestry projects were the four newest projects to be listed recently
  • CCO prices have registered a minor decrease last week with CCO 8 prices with no change in CCO 3 prices
  • The backlog of ROCs now stands at over 33.9 million after ROCs were awarded to projects last week

Key Dates

  • Nov 28 – Joint Community Meeting for Minimizing Community Health Impacts from Freight and Community Air Protection Program
  • Dec 1 – ARB will announce Auction Reserve Price and Annual Auction Budget for 2018

Download this report (pdf)

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