https://www.bloomberg.com/news/articles/2020-12-06/water-futures-to-start-trading-amid-growing-fears-of-scarcity?cmpid=socialflow-twitter-business&utm_content=business&utm_source=twitter&utm_medium=social&utm_campaign=socialflow-organic

Water is joining gold, oil and other commodities traded on Wall Street, highlighting worries that the life-sustaining natural resource may become scarce across more of the world.

Farmers, hedge funds and municipalities alike will be able to hedge against -- or bet on -- potential water scarcity starting this week, when CME Group Inc. launches contracts linked to the $1.1 billion California spot water market. According to Chicago-based CME, the futures will help water users manage risk and better align supply and demand.





So...are we f*cked? Water, like Air, I never expected to be in the market...

If we allow these people to write environmental laws, I assure you, it's designed as a power grab for our money.
There is no water crisis, there are only idiot tools willing to buy the lie.

Quote from: ModelCitizen on December 07, 2020, 07:47:09 AM
https://www.bloomberg.com/news/articles/2020-12-06/water-futures-to-start-trading-amid-growing-fears-of-scarcity?cmpid=socialflow-twitter-business&utm_content=business&utm_source=twitter&utm_medium=social&utm_campaign=socialflow-organic

Water is joining gold, oil and other commodities traded on Wall Street, highlighting worries that the life-sustaining natural resource may become scarce across more of the world.

Farmers, hedge funds and municipalities alike will be able to hedge against -- or bet on -- potential water scarcity starting this week, when CME Group Inc. launches contracts linked to the $1.1 billion California spot water market. According to Chicago-based CME, the futures will help water users manage risk and better align supply and demand.





So...are we f*cked? Water, like Air, I never expected to be in the market...

Do you really believe this BS? There is plenty of water if politicians would stay out of the way.

Quote from: supsalemgr on December 07, 2020, 08:19:56 AM
Do you really believe this BS? There is plenty of water if politicians would stay out of the way.

Remember the leftist talking point of "Energy Crisis"? There never was a crisis till the DNC helped Obozo create one via green energy, and then our energy prices "Necessarily Skyrocketed", just like Obozo said they would under his plans.

Quote from: Solar on December 07, 2020, 08:37:26 AM
Remember the leftist talking point of "Energy Crisis"? There never was a crisis till the DNC helped Obozo create one via green energy, and then our energy prices "Necessarily Skyrocketed", just like Obozo said they would under his plans.

Let us not forget how the Corps of Engineers is complicit.

Quote from: supsalemgr on December 07, 2020, 09:50:24 AM
Let us not forget how the Corps of Engineers is complicit.

Yep, govt is complicit. Thank You RINO!

Quote from: Solar on December 07, 2020, 10:28:44 AM
Yep, govt is complicit. Thank You RINO!

I am a conservative.

Quote from: supsalemgr on December 07, 2020, 10:30:56 AM
I am a conservative.

Not you, our complicit RINO GOP Establishment allows all of this to happen.
Not a one stood up to govt mandates over solar, Bush even extended Green subsidies, and the party got rich off the backs of the taxpayer.

Quote from: Solar on December 07, 2020, 10:33:15 AM


Not you, our complicit RINO GOP Establishment allows all of this to happen.
Not a one stood up to govt mandates over solar, Bush even extended Green subsidies, and the party got rich off the backs of the taxpayer.

Agreed. The Bush's really had a lot of folks fooled. George W's handling of post 9/11 covered much of his terrible work elsewhere.

Quote from: supsalemgr on December 07, 2020, 11:57:42 AM
Agreed. The Bush's really had a lot of folks fooled. George W's handling of post 9/11 covered much of his terrible work elsewhere.

If not for the RINO, statewide CPUC wouldn't be run by leftists, forcing energy producers to use so called Green energy sources like solar, a complete boondoggle.
Neither party wants nuclear because there's no profit in actual clean energy, instead they farce wind turbines, or as I call them, Raptor Blenders, killing millions of birds yearly, as does solar.

Now they want to monopolize water? Not as long as Trump is in office!

Quote from: Solar on December 07, 2020, 01:43:38 PM
If not for the RINO, statewide CPUC wouldn't be run by leftists, forcing energy producers to use so called Green energy sources like solar, a complete boondoggle.
Neither party wants nuclear because there's no profit in actual clean energy, instead they farce wind turbines, or as I call them, Raptor Blenders, killing millions of birds yearly, as does solar.

Now they want to monopolize water? Not as long as Trump is in office!

STOP dumping hundreds of thousands of acre-feet of water into the ocean every day.  Problem solved

Quote from: Solar on December 07, 2020, 01:43:38 PM
If not for the RINO, statewide CPUC wouldn't be run by leftists, forcing energy producers to use so called Green energy sources like solar, a complete boondoggle.
Neither party wants nuclear because there's no profit in actual clean energy, instead they farce wind turbines, or as I call them, Raptor Blenders, killing millions of birds yearly, as does solar.

Now they want to monopolize water? Not as long as Trump is in office!

Moving to nuclear power is a licence to print money. ("Raptor Blenders"), I like that one.

Quote from: Tory Potter on December 12, 2020, 08:22:53 AM
Moving to nuclear power is a licence to print money. ("Raptor Blenders"), I like that one.

How so?

The commie theft of water begins...
This will only end in death, many deaths, mostly bureaucrats and cops being forced to enforce an illegal law.

Investors can now trade on and profit from California water — how might that work out?


It's not just Californians paying attention to the state's water supply anymore. It's Wall Street.

In a sign of the growing value of water in a warming world, investors began trading futures of the coveted commodity, tied to California water prices, for the first time last week.

The novel marketplace allows speculators to make money betting on future prices of California water while allowing farmers, businesses and municipal suppliers to hedge against price swings and stabilize their costs.

How well this will work remains to be seen. While many say a commodities market can help those in need of water, finance and water experts say the new financial instrument may provide only limited risk protection and could even put upward pressure on water prices.

"It's a cool concept," said Jon Reiter, founder of the agriculture and water consulting company Cavalrei in Fresno. "I think it has a lot of potential, and I think this is the right direction to move in, but there are some challenges that still need to be worked out."

Unlike oil, grain and other traded commodities, the new water futures aren't about the physical exchange of a product. They're about exchanges of money based on the value of the product. The trading of actual water will continue as it always has in California, between limited numbers of irrigation districts and urban suppliers that generally make insider deals to accommodate one another's varying needs. Wealthy outsiders won't be siphoning off the state's water supplies.

But the financial wheeling and dealing, say the creators of the water futures, stands to improve the efficiency of real-world water transactions, starting with making prices more transparent, and perhaps ultimately facilitating more exchanges and putting water to better use.

"All of (this) can help California water users to more efficiently align supply and demand of this vital resource," Tim McCourt, a managing director at Chicago-based CME Group, which launched the new commodity exchange Dec. 7, said in an email to The Chronicle.

An irrigation canal runs through an almond orchard off Airport Way in Modesto, Calif., on Tuesday, December 11, 2018. Sen. Dianne Feinstein is joining forces with House Republicans to try to extend a controversial law that provides more water for Central Valley farms, but with a sweetener for the environment: help with protecting California?s rivers and fish. The proposed extension of the WIIN Act, or Water Infrastructure Improvements for the Nation Act, would keep millions of federal dollars flowing for new dams and reservoirs across the West. It would also continue to allow more water to be moved from wet Northern California to the drier south. We need photos that speak to the central valley's dependance on this shipped water.

In the futures exchange, investors buy into contracts that represent a specific amount of water at prices based on the Nasdaq Veles California Water Index (NQH20). The index tracks water sales across parts of California where water trading is common. Investors eventually cash out of the contracts, either benefiting from an uptick in the index or losing out if the index slides.

California water prices have typically gone hand-in-hand with precipitation, going up in dry times and down in wet periods.

"The futures are like a bet on the weather," said Ellen Hanak, a senior fellow at the Public Policy Institute of California who specializes in water.

For farmers and other water users interested in managing risk, there's the ability to lock in future water costs, at least theoretically. The water users can buy into the market at one price, and if the price goes up, sell the contract and use the proceeds to purchase real, higher-priced water. If the price goes down, the loss is made up by the lower cost of real water.

"We have some very sophisticated agricultural operations in this state with a lot of dollars involved, and they might be interested in using this as a hedge," Hanak said.

Still, she and others say there are inevitable problems with a futures market that make it an imperfect place to reduce risk and invest.

Most fundamentally, establishing prices for futures that reflect true water costs in California is difficult given how much water prices vary with geography and water rights. What water users pay won't always be in line with market prices, which are a weighted average, inevitably skewing investment decisions.


https://www.sfchronicle.com/environment/article/Investors-can-now-trade-on-and-profit-from-15805472.php?utm_campaign=CMS%20Sharing%20Tools%20(Premium)&utm_source=t.co&utm_medium=referral