January 11, 2018 / 11:10 AM / 11 days ago

EUROPE POWER-Prompt prices fall on weather but remaining winter prices rise

FRANKFURT, Jan 11 (Reuters) - European OTC day-ahead power sagged on Thursday on predictions for warmer weather and more wind supply near term, but most positions further ahead posted gains.

* “There are a few question marks over medium-term demand and that’s why the prices for coming weeks and the remaining winter months are up, just in case,” one trader said.

* Temperatures will turn lower next week and should this usher in a cooler trend for the remainder of the winter, it would be bullish, traders say. But weather reports have not taken a strong line for either cooler or milder weather.

* The German baseload electricity contract for Friday delivery lost 8.7 percent to 43.15 euros ($51.55) a megawatt-hour (MWh).

* The equivalent French contract was down 5 percent at 45 euros/MWh.

* Wind power generation in Germany under one Thomson Reuters data scenario was seen rising to 5 gigawatts (GW) on Friday from an expected 2 GW on Thursday.

* Temperatures are due to edge up to Friday but decline thereafter.

* They may fall to 1.7 degrees Celsius on average next week in Germany from 3.1 degrees forecast for Friday. In France, the average could be 6.4 degrees, down from possibly 7 degrees on Friday.

* French nuclear availability remains at a comfortable 93 percent of capacity.

* Along the more distant curve, Germany’s Cal ‘19 baseload delivery hovered around an unchanged level after hitting a four-week low the previous session, driven by global coal price losses.

* The German Cal’ 19 power contract traded at a steady 35.8 euros around midday.

* The equivalent French year-ahead contract was untraded after a close at 41.1 euros

* Cif Europe coal for 2019 also did not change hands after falling nearly 2 percent in the previous session which closed at $84.75 a tonne.

* December 2018 expiry carbon emissions permits were level with their last close at 7.89 euros a tonne.

* Among other related fuels, oil reversed some earlier losses and UK gas posted gains on cold forecasts and plans for cuts at the Dutch Groningen field.

* In eastern Europe, the Czech day-ahead power contract was untraded, having closed at 45.31 euros on Wednesday. The Czech year-ahead contract was down 15 cents at 36.85 euros. ($1 = 0.8371 euros)

For Thomson Reuters' morning report and fundamental data please click here (Reporting by Vera Eckert; Editing by Susan Fenton and Edmund Blair)

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