The latest Commitment of Traders (CoT) report released by ICE yesterday, based on data as of last Friday, showed that investment funds trimmed their net long holdings to 76.2 million allowances, down from 78.0 million the previous week.

Positions betting on higher carbon prices declined for the first time since the week ending August 15, signaling weakening investor confidence in further gains and suggesting a more bearish outlook for EUA prices.

 Speculative traders reduced their long positions by 4.3 million to 103.3 million allowances, while short positions also fell by 2.5 million.

The sentiment in ICE’s latest report was mirrored in trading, with EUA prices falling in three of last week’s five sessions and ending 2% lower overall.