CME futures contract paves way for better water management
You may have heard the exciting news about the CME group launch of the first-ever regulated, exchanged-traded risk management tool for water futures based on the Nasdaq Veles California Water Index (NQH20).
The NQH2O index is based in part on data derived from our own Waterlitix™ database. Our water pricing database is a reflection of our past and present, a product of our ongoing transaction and consulting experience in the water rights space.
“Water transfers have become a critical source of water supply for California’s agricultural sector during droughts,” WestWater Managing Director and a Principal Clay Landry said. “Market competition certainly has increased in recent years. The water futures developed by CME and Nasdaq provides agricultural water users another tool to manage price risk as water market competition increases.”
Please feel free to reach out directly to understand how you can use this tool as part of your water resource management operations.