Water, like gold, oil and other raw materials, began to be traded on the US stock market, despite its worrying scarcity, it was known today in the financial markets. The trading of the precious liquid began on the Chicago Mercantile Exchange (CME), the world’s largest commodity futures exchange, where you can bet on the availability of water in California, the largest agricultural market in the United States and the fifth largest economy in the world.
Initially, future contracts will reach 2022, it will be valued in acre-feet, which according to the decimal metric system is equivalent to 1,233 cubic meters or what is the same one million 233 thousand liters of water.
According to the operators of the CME, the futures of the water in this exchange become the first indicator in the world of this regard, and because it is such an important economy, it will surely determine what happens in other parts of the planet with regards to the same issue.
CME clarified that water will not be delivered at the end of the contract, since it will only serve to set prices in many regions of the world, so there will not be a physical market, but there will be a financial indicator that will determine the cost of the most precious good for the human being.
In this first stage, ordinary citizens will perceive practically nothing of what happens in the CME on water futures, although in a not too distant time it is possible that prices will begin to influence more in public prices, because they will serve as guides to incorporate factors such as supply, demand, droughts, hurricanes, and infrastructure.
With the presence of water in the stock market, it will be inevitable that its futures prices will impact over the years, for better or for worse, in people’s pockets.