The latest Commitment of Traders (CoT) report from the ICE platform, published on Wednesday shows that investment funds have reduced their net long holdings (long positions minus short positions) for ten consecutive weeks.

According to market data available as of last Friday, net long positions remained relatively stable declining by a further 0.4 million allowances, or 1.25% compared with the previous week, bringing the total down to 32,4 million allowances—the lowest level in a year.

Speculative traders reduced their long positions by 7,2 million allowances bringing the total to 74,2 million allowances while simultaneously trimming their short exposure by nearly 6.7 million to 32,3 million allowances, the biggest decline in a year. 

Net long positions peaked in mid-January at around 126 million allowances. Since then, they have fallen by roughly 70%, pointing to a sharp decline in investor confidence in further upside and indicating a more bearish outlook for EUA prices.

The Commitment of Traders (CoT) report is a weekly publication released by ICE every Wednesday, providing a snapshot of positions held by different market participants based on data from the preceding Friday. The report serves as a sentiment indicator, helping traders understand how large investors and compliance buyers are positioned regarding future price movements.