The Chicago Mercantile Exchange Group (CME Group) is a leader in Futures Trading. The group recently announced that water is now a tradable commodity on its exchange. In this case, it refers to California water. California constantly battles for access to the scarce and often elusive commodity, water. From our right to safe drinking water to agricultural demands to recreation and development, water is on everyone’s agenda.
California emerged from an eight-year drought last year, which resulted in massive crop losses. Township existence hinges on affordable water supply. Hence, prices rise, and budgets are adjusted as the world gets hotter than ever.
The CME Group has an answer: futures trading. In December, water joined oil, gold, wheat, and Bitcoin as a tradable commodity. Cities and farmers can now buy futures in California’s water. This means that traders can hedge against or bet on rising water prices out West. Therefore the trading opportunities now exist to capitalize on fluctuations in supply and climactic events. Will other states follow? Stay tuned.
Trade Water Futures in Your IRA
Futures trading is one of the most popular and common investments in a self-directed IRA. Typically, the IRA owner has expertise in market trading. Never is this more true than with futures traders. Investors need knowledge and understanding of the markets and how they trade. If you would like to learn more about Futures Trading in your self-directed IRA, please contact Midland at (239) 333-1032. Or head to our website at www.midlandtrust.com.