Resources
- January 8, 2021
-
Views: 3
Water Futures Start Trading Amid Growing Fears of Scarcity
Warning: Array to string conversion in /home/domains/dev.landreport.com/public/wp-content/plugins/elementor/core/dynamic-tags/manager.php on line 73


Futures linked to the Nasdaq Veles California Water Index began trading on the Chicago Mercantile Exchange in early December, representing a whole new way to buy water. Amid concerns about climate change and resource scarcity in a state that uses four times more water than any other, turning H2O into a commodity akin to oil or cattle enables farmers, municipalities, and funds to wager on future pricing. According to Bloomberg, CME Group Inc.’s January 2021 contract finished on December 7 at $496 per acre-foot with two trades.
The announcement of the first-of-their-kind contracts came back in September as relentless wildfires and scorching heat sizzled much of the state. California was in a drought from December 2011 to March 2019, during which time water transactions totaled some $2.6 billion. Each contract represents 10 acre-feet of water or roughly 3.26 million gallons.
Click here to read more.
RELATED ARTICLES
2020 Farmland Deal of the Year
By Christina Holbrook | Photography courtesy of Ferrari-Carano Here’s to the 2020 acquisition of Ferrari-Carano Vineyards …
Ted Turner Acquires Dances with Wolves Ranch
Formerly known as the Triple U, the Standing Butte Ranch’s 46,000 acres are native prairie …
Idaho Considers Landowner Tax Credits
Farmers, ranchers, conservationists and lawmakers are working together to bring about a conservation tax credit …
Elk Creek Ranch Acquires Seven Lakes
For those who are passionate about outdoor pursuits, the next great adventure can’t come soon enough.