The only lower price than today’s closing price on a ton of carbon is ZERO
Perhaps reacting to the news yesterday about the IPCC getting taken to the woodshed, the growing number of stories in the MSM about the IPCC failure, and the recent layoffs at CCX, carbon trading has once again been devalued by the market. Amazingly, it lost 50% of it’s value for 2006, 2007, and 2008 “carbon instruments” today. Here’s the CCX front page graph at closing today:
The CCX end of day table really says it all, 50% off, from a dime to a nickel in a day:
It must have really killed the person to have to put in a nickel for the closing value today.
Charcoal briquettes and coal have more value than a ton of CCX carbon instruments these days.
Unless CCX starts making adjustments in single cents, the next downward adjustment is zero. The latest CCX advisory says they will be closed for labor day, and will reopen for trading September 7th. One wonders.
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R. de Haan said at 7:04 pm
This still isn’t over.
NOT BY A LONG SHOT! WAY TO MUCH MONEY INVOLVED – –
Climate Exchange Plc (CLE) is an AIM listed company which owns:
Chicago Climate Exchange (CCX), launched in 2003
The European Climate Exchange (ECX)
Chicago Climate Futures Exchange (“CCFE”)
Insurance Futures Exchange Services Ltd (IFEX)
California Climate Exchange (CCEX)
Montréal Climate Exchange (MCEX)
Wilderhill Clean Energy Index (ECO index)
December 2007 CCX announced the signing of a memorandum of understanding with the Chinese National Petroleum Corporation Assets Management (“CNPCAM”)to create a joint venture company to explore the feasibility and implementation of an emissions trading platform in China.
July 2008 CCX signs agreement with China national Petroleum Corporation Assets Management Co. Ltd and the City of Tianjin to jointly engage in emissions trading in China.
IFEX launches Florida Wind and Gulf Coast Tropical Wind Futures
CCFE Announces the Successful Launch of Futures Contracts on California Climate Action Registry
CCFE launches Renewable Energy Certificate (REC) Futures
Australian Envex Exchange
http://www.climateexchangeplc.com/company-history
AND GUESS WHO WAS THERE RIGHT AT THE BEGINNING? IN CHICAGO….
From Bloomberg:
Richard Sandor, Barack Obama and the Founding of the Chicago Climate Exchange
Legislation to let polluters buy and sell carbon-dioxide emissions like pork bellies is the outgrowth of Richard L. Sandor, founder of the Chicago-based network of people trading pollution permits from Beijing to Brussels known as Climate Exchange. It doesn’t hurt that the six-year-old market got $1.1 million of seed money from the city’s Joyce Foundation, whose board included a little-known state senator named Barack Obama.
http://www.climateexchangeplc.com/investor-relations/directors
I would place NO bets against this gang.
If I had a nickel for every time someone told me this was going to happen, I’d be….uh…..
never mind.
Meanwhile in NZ the government designated value per tonne is NZD25…
Thanks, green party.
For BillyV & Kim
You buy sixteen tons
of carbon dioxide gas
and what do you get?
Can anybody say ”flat-lined” ??…
If only we could have gone big-time short during the ”good times”. . . .
They are getting what they deserve.
Now, our job is to avoid getting what they deserve.
I’ve heard that some labor union pension funds put money there.
Let’s see them try to hide that decline.
It doesn’t matter if the price is 5 cents or 5 million dollars, if it doesn’t trade at all (that’s what the graphic appears to show).
Hmm. Do they actually provide you with certificates?
Maybe I’ll invest a few bucks. Enough to make a suit of clothes out of them.
It’s not likely that the CCX is shutting down anytime soon. They have a booming market in a wide variety of products.
Nitrogen futures, Sulfur futures… they even trade Florida Tropical wind futures.
Link to an XLS spreadsheet, price history for all products traded in 2010 (4.2 megs):
http://www.ccfe.com/mktdata_ccfe/sfi/historical/Historical_Prices.xls
XLS 2010 trading volume:
http://www.ccfe.com/mktdata_ccfe/historical/CCFE_Monthly_Volumes.xls
Florida Tropical wind futures
So they also sell hot air?
Nitrogen futures, Sulfur futures…
Does a handbasket come with that?
Bill H says:
August 31, 2010 at 7:29 pm
“I wonder if Al is now shorts less…”
I understand that had already occurred a few months back in Portland, Oregon.
Dear Congressman Waxman, if I go out and buy a million tons on the CCX can I have a lifetime exemption from all carbon fuel taxes, maybe even a subsidy?
Maybe that way I could afford a Gulfstream…
OK– Dave Dardinger,
What do I get?
Now that’s a real death spiral!
-Scott
Presumably the infallible computer modelers are investing their grant money right in every possible ‘instrument’ at bargain basement prices.
Right – Mike, Gavin, Phil, Tamino, et al?
In the unlikely event that the models turn out to be wrong – plan-b is a tax-payer bail out.
(or was that plan-a in the first place anyway?)
A century ago, when we still had a semi-free market economy, CCX would have closed shop, dried up, and blown away.
Today, they’ll probably hold out in hopes of some bail-out monies to tide them over till cap-and-trade passes.
If they can’t sell the carbon credits, I have some space they can rent on Lower Wacker Drive. It even has a river side view of the lovely Chicago River and they can count cans and bottles as they float slowly by (and whaterver else happens to be floating by)
If it drops another ten cents to -.05, then I’ll buy all they’ve got! They’d have to send me a nickle with every share, so I’d pocket the money and, as a bonus, have fuel for my fireplace this winter! 😛
Arizona CJ – short the sale… LOL
The Crash Heard ‘Round the World.
By the way, the spot price for Central Appalachia 12,500 Btu, 1.2 SO2 coal this week was $69.50 per ton. Compare that 5 cents per ton for fiat “market” carbon futures.
How do you ridicule the profoundly ridiculous? And when you consider that the Founders of CCX are now managing the Nation’s economy, it is difficult to be amused.
This is an enormous manufactured scam, but consider– if some form of cap and trade passes, even if mandated by the EPA, there could be a boatload of money to be made by bottom-feeding on this stuff.
Hell, if the government is going to kill the economy even worse than it is now and energy prices will go up, this could be just the place to shelter those dollars and actually make some dough. I’ve been trying to work on the “angle” to all of this, and this could be just the sort of investment. If the government is making artificial markets right in front of us, might as well find a way to make some money…
Like I said when this exchange started, don’t be to surprised if the politico’s don’t do something about this as it’s a way of taxing people breathing, it’d be legendary in the political world, taxing air simply brilliant in there private bars.
And someone commented around here that the enviro’s where like a water melon, green on the outside, red in the middle, i’d like to thank you for that as i’ve had some of my more intelligent friends rolling around on the floor with that.
You can guarantee that the gravitational anomaly known to some as Poodle Man has shorted his carbon and can now afford those sea walls around his “global village” on the west coast.
It’s all good.
The formula: create an investment vehicle, hype the new commodity, buy low, watch share prices rise, sell high. The result is money, lots of it. In some cases it’s been about driving up the share prices of companies Gore’s group has already invested in. The fact that the original shareholders of the CCX have already bailed out with their sale to Intercontinental Exchange Inc. for a modest $600 million earlier this year only reinforces the reality that its creators have already lost faith in their elaborate invention. Likewise, the self-styled leaders of the climate change crusade Maurice Strong and Al Gore have already cashed in carbon fortunes already, whilst other active politicians like US President Barrack Obama, and United Nations IPCC Chief Rajendra K. Pachauri are engaged in similar play with their own financial interests in the “carbon” markets.
Like all government rigged quasi-commercial schemes, the only real beneficiaries are the initial shareholders- a special inner circle who are naturally ahead of the curve knowing about legislation and policy before it comes into existence. They are sometimes called “the great and the good,” “the in-crowd,” or “the smartest men in the room” (again, see Enron). Of these, almost all have jumped ship out of the market while their preferred shares- or in the case of the larger energy and manufacturing monopolies, their gratis “Carbon Allowances” given to them free by their governments- are still worth something. If you’re on the inside, it’s simple- get in early, make a ton of money then get out.
The CCX is flat-lining (though, like Frankenstein’s monster, it awaits re-animation as it’s still not actually dead yet) because the market anticipates Obama losing control of Congress in a few weeks. So “Cap and Tax” is impossible to pass, and Obama has already stated that the remainder of his term will be spent implementing current legislation rather than drafting new laws.