We need water to cook and wash our bodies and clothes, and especially to drink—without it, we can’t live. Despite this, Wall Street traders are going to start betting on it as a commodity.
This week, with the launch of $1.1 billion contracts tied to water prices in California, the Chicago Mercantile Exchange will launch the country’s first water market. It will allow farmers, hedge funds, and municipalities to essentially make wagers on the price of water and likelihood of water scarcity. Water will be a commodity, like gold or oil.
