France: French spot heads upwards, and curve prices follow suit
France firmed on Tuesday as a general bullish trend spread throughout the continent. One trader reported an interesting session after an uneventful Monday.
In a similar fashion to the previous session, bid and offer were wide in the morning but tightened rapidly to remain narrow throughout the day. This not only applied to the spot product, one market participant said.
PEG Nord Day-ahead opened at a similar level to its previous session at €12.35/MWh. It firmed slightly in the course of the session, closing at €12.50/MWh.
Interest for curve products was strong, notably so for the front month. April '10 went up from €12.20/MWh, last changing hands at €12.70/MWh around half an hour before the end of play.
Several traders considered this level a bit too high. At the close, a bid-offer spread stood at €12.45-12.70/MWh, putting the midpoint fractionally higher than the Day ahead.
"We should see market corrections: spreads between the Day ahead, Front month and Summer contracts between the different hubs are irrational at the moment," one source observed. "There will be some natural adjustments soon."
Beyond the front month, trading focussed on Summer '11 as the contract traded at €14.05-14.25/MWh. DL
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