According to the latest Commitment of Traders report, published for the week ending June 7, speculative investors have continued to raise their net short positions (short term – long term) by around 1,8 million allowances, indicating a preference for selling.

Specifically, investors have reduced their long term holdings from 44,1 million allowances to 40,7 million allowances, a 7,5% weekly decline. In the same time, speculators have reduced their short-term positions, however by a smaller margin, from 52,1 million allowances to 50,6 million allowances.

Source: Commitment of traders report

This dynamic led to net-short positions of 9,8 million allowances, the highest in three weeks, suggesting that investors are overall convinced that the price should go lower and positioned accordingly. This behavior was correlated with the price development last week, with EUAs dropping by 3,7%. 

The commitment of traders report has been published each Wednesday by the ICE platform since 2018,  reflecting the positions held on the previous Friday by financial institutions and operators with Obligations Under Directive 2003/87/EC, an indicator of the market sentiment.