Since their introduction last year, the California Water Index and California water futures has stirred controversy – and even legislation against it. But what exactly are water futures – the commodification of water or a price tool for farmers?
In this Office Hours session, we spoke with Bryce McAteer and Matthew Payne from Westwater Research about the California water index and California water futures.
If you have questions or want more information, you can email Bryce at McAteer@westwater.com or Matthew at Payne@westwater.com.
Join us for our next Office Hours on June 16
- We’ll be hosting Fresno State for a presentation and Q&A on how to read a GSP. Click here to register.
Here are the resources shared in the chat:
- An example of what California water futures are not: Article: Hurtado calls for a crackdown on water profiteering: https://www.recorderonline.com/news/hurtado-calls-for-a-crackdown-on-water-profiteering/article_ffe5f74e-d6cd-11ec-8527-e3d896241180.html
- NQH2O Index – Index values, updated weekly, for the NQH2O California Water Price Index: https://www.nasdaq.com/market-activity/index/nqh2o
- NQH2O Futures Overview – A summary description of the NQH2O Futures listed by CME: https://www.cmegroup.com/trading/equity-index/us-index/nasdaq-veles-california-water-futures.html
- Brokers, FCMs, and Liquidity Providers – List of entities providing clearing and execution services for entities seeking to participate in the futures market. https://www.cmegroup.com/trading/equity-index/us-index/nqh2o-futures-fcms-block-and-efrp-intermediaries-and-liquidity-providers.html
- Brokers, FCMs, and Liquidity Providers – List of entities providing clearing and execution services for entities seeking to participate in the futures market: https://www.cmegroup.com/trading/equity-index/us-index/nqh2o-futures-fcms-block-and-efrp-intermediaries-and-liquidity-providers.html
- Hedging with Futures – Examples of how water users could hedge their water price risk using water futures: https://www.cmegroup.com/education/articles-and-reports/hedging-with-water-futures.html
- California’s Water Futures Market: Explained, by Cora Kammeyer at the Pacific Institute: https://pacinst.org/californias-water-futures-market-explained/
- Implications of California’s Water Futures Market, by Michael Cohen at the Pacific Institute: https://pacinst.org/implications-of-californias-water-futures-market/
- Water markets in California can reduce the costs of drought, commentary by the PPIC’s Ellen Hanak at Cal Matters
- Food & Water Watch Fact Sheet: The Water Futures Market: Gambling With Our Water: https://www.foodandwaterwatch.org/wp-content/uploads/2021/12/FS_2112_Water-Futures-WEB.pdf
- Rep. Khanna, Senator Warren Introduce Bill to Prevent Corporations From Profiting Off Water Rights, press release from Food & Water Watch: https://www.foodandwaterwatch.org/2022/03/22/rep-khanna-senator-warren-introduce-bill-to-prevent-corporations-from-profiting-off-water-rights/
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