...are planning to launch a futures contract later this year that will allow farmers, speculators and others to wager on the price of water.
"The futures will reflect transactions in the market for water in California, which a huge population and vast agricultural lands make America’s thirstiest state. Water futures contracts will be priced in dollars an acre-foot, which is the volume required to cover an acre a foot deep, about 325,851 gallons."
"Water futures will be available for trading up to two years out over 10 monthly contracts: one every three months along with the two most immediate nonquarterly months. Each contract will stand for 10 acre-feet of water."
"Unlike in markets for many commodities, buyers won’t have to find somewhere to put 3.3 million gallons of water if they hold an expiring water futures contract. "
Looking forward to have it available...
« Back to index