{"id":380,"date":"2025-12-03T09:25:07","date_gmt":"2025-12-03T09:25:07","guid":{"rendered":"https:\/\/landvaluealpha.com\/blog\/?p=380"},"modified":"2025-12-03T09:25:07","modified_gmt":"2025-12-03T09:25:07","slug":"hedging-water-price-risks-cme-group-launches-water-derivatives-in-californias-largest-u-s-water-market","status":"publish","type":"post","link":"https:\/\/landvaluealpha.com\/blog\/hedging-water-price-risks-cme-group-launches-water-derivatives-in-californias-largest-u-s-water-market\/","title":{"rendered":"Hedging Water Price Risks: CME Group Launches Water Derivatives in California&#8217;s Largest U.S. Water Market"},"content":{"rendered":"\n<p>Water is becoming more and more scarce and prices per acre feet are going up. To enable water users to hedge pricing for their water needs, the CME Group has developed a relatively new (originally launched December 2020) derivative solution to hedge water price exposure. It is starting to gain popularity as evidenced by a admittedly slow but steady annual increase in trading volume.<\/p>\n\n\n\n<p>Land Value Alpha Fund focuses our water rights creation\/acquisition in Montana, a head water state, where much of the Western U.S. water begins. California is not so fortunate. Hence the CME Group has launched this initial water derivative solution for the California water market. The largest water market in the U.S.<br><br><a href=\"https:\/\/www.cmegroup.com\/markets\/equities\/nasdaq\/nasdaq-veles-california-water-index.html\" target=\"_blank\" rel=\"noopener\">A new derivative solution to hedge water price exposure<\/a><br><br><a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23waterrights&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">#WaterRights<\/a>\u00a0<a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23waterinvesting&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">hashtag<\/a><br><a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23waterinvesting&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">#WaterInvesting<\/a>\u00a0<a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23commodities&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">hashtag<\/a><br><a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23commodities&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">#Commodities<\/a>\u00a0<a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23alternativeinvestments&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">hashtag<\/a><br><a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23alternativeinvestments&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">#AlternativeInvestments<\/a>\u00a0<a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23montana&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">hashtag<\/a><br><a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23montana&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">#Montana<\/a>\u00a0<a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23naturalresources&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">hashtag<\/a><br><a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23naturalresources&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">#NaturalResources<\/a>\u00a0<a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23privateequity&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">hashtag<\/a><br><a href=\"https:\/\/www.linkedin.com\/search\/results\/all\/?keywords=%23privateequity&amp;origin=HASH_TAG_FROM_FEED\" target=\"_blank\" rel=\"noreferrer noopener\">#PrivateEquity<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Water is becoming more and more scarce and prices per acre feet are going up. To enable water users to hedge pricing for their water needs, the CME Group has developed a relatively new (originally launched December 2020) derivative solution to hedge water price exposure. It is starting to gain popularity as evidenced by a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":133,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-380","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/posts\/380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/comments?post=380"}],"version-history":[{"count":1,"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/posts\/380\/revisions"}],"predecessor-version":[{"id":381,"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/posts\/380\/revisions\/381"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/media\/133"}],"wp:attachment":[{"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/media?parent=380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/categories?post=380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/landvaluealpha.com\/blog\/wp-json\/wp\/v2\/tags?post=380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}