LGC spot prices increased steadily over July and August, from $33.25 to $34.75. before rising sharply to $40.40 by
the end of September. Forward prices saw similar growth, with Cal24s experiencing the steepest increase from $15.00
at the start of Q3 to $28.25 at the end of Q3. Forward prices are likely being sustained by liable entities looking
to shore up supply for future liabilities, including demand to redeem shortfall and expected growth in voluntary LGC
demand from the Climate Active program and GreenPower.
Forward prices have continued their convergence with the spot prices. During the quarter, Cal21s converged on to the
spot price while Cal22s closed the gap with the spot price by $3.50. While the spot price typically increases at
this time of year as liable entities prepare for the annual RET liability acquittal, it is noted that some forwards
are converging at the same price as the spot. It will be interesting to monitor this, particularly, after liability
is acquitted on 14 February 2022.
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