Coal news and updates

US OTC thermal coal market trade limited Wednesday to PRB options

The US over-the-counter thermal coal market was limited Wednesday to options trades for the financially settled Powder River Basin 8,800 Btu/lb contract, as physical markets were shut out.

Put options for the Cal 2016 strip traded three times Wednesday, following on the heels of two similar trades Tuesday.

The first Wednesday put option went for 19 cents/st for 20 contracts/month with a $9.75/st strike price, then the strip traded twice more for 20 cents/st for 50 contracts/month and 20 contracts/month, each with a $9.75/st strike price.

Tuesday's put options traded for 16 cents/st at a similar strike price.

Put options for the Cal 2016 strip traded as high as 25 cents/st on September 17. The strike price then was $10.50/st.

A physical bid for the December PRB 8,800 contract was reported Wednesday at $10.10/st.

Platts assessed the front-month (December) PRB 8,800 contract on Wednesday at $10.20/st, unchanged from Tuesday, based on the reported bid and broker marks.

The Central Appalachia physical and futures markets was quiet Wednesday, as low natural gas prices continue to weigh on physical CAPP coal demand.

By comparison, nominal tons traded in the CAPP physical and financial markets since November 1 total 341,000 st, compared with 893,000 st in the same period last year.

Platts assessed the front-month (December) CAPP rail (CSX) contract on Wednesday at $38.75/st, unchanged from Tuesday, based on broker marks.

The physical CSX contract last traded November 3 for $37/st.

In addition, Platts assessed the back half of the CSX physical curve lower, based on broker marks.

The CAPP barge contract was also unchanged Wednesday, assessed at $42.25/st.

source: http://www.platts.com