Farmers are identified to wish for rain. Now they will hedge towards unanswered invocations.
Change operators CME CME -0.66% Group Inc. and Nasdaq Inc. NDAQ 1.04% are planning to launch a futures contract later this 12 months that can permit farmers, speculators and others to wager on the value of water.
The market would be the first of its form, its creators say, placing water on the board for traders alongside different uncooked supplies like crude oil, soybeans and copper.
“You’ve got an important commodity on this planet and every thing else is listed besides the water worth,” mentioned Lance Coogan, chief government of Veles Water Ltd., which created a water-price index to which the futures can be tied.