CME group will allow the negotiation of future contracts with water.
The UN believes by the year 2050 there will be a shortage of water, it is expected that by 2025 2/3 of the population will suffer from a shortage of water, which is why the Wall Street CME group has begun to speculate with its value, allowing future contracts on Water.
The multinational Nestlé carried out an investigation in its secret moment to determine in which year the drinking water would end, that investigation concluded that it is 2050, in the investigation the main reason for the investigation is to base food on meat because corn is needed and soybeans in large quantities to supply livestock.
Let's understand the statistics on water to better see the picture, 96.5% of the water is in the oceans, only 3.5% is fresh and of this amount 69% is trapped in ice caps and polar glaciers, the other 30% is underground and expensive to extract, leaving only 1% of potable water with easy access to meet urban and agricultural needs. We know that rainfall and snowfall re-supply the water sources, but due to the increase in temperature this fact will be less and less frequent, another problem is the rise in sea level which produces more salt water in the surface water systems increasing purification costs.
All these data have led large capitalists to see a business with a scarce resource, the ability to manage the price in the future can determine how and when water will continue to be used. CME Group is the largest futures market that exists (a futures contract is an agreement to buy or sell an asset at a specific time at an agreed price) historically futures contracts have been traded for oil and gold, now it is the water shift, the CME Group launched the ability to trade futures contracts for the water market in california.
Each contract will be for the approximate equivalent of 12 million liters of water, this will allow agricultural producers to protect themselves from the uncertain prices of water in California, we must understand that the state of California in the United States represents the 6th world economy and produces the Most of the vegetables consumed in the United States, agricultural plantations consume the most water 40%, only 10% of the water is used for residential use.
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@tipu curate 3
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Greetings @ramsesuchiha, reading news like this, is something that in particular causes me disorientation, perhaps because, I do not understand the reason why we have come to have water deficit, although, already the mineral water is marketed in the future the serious problems of pollution that crosses the bodies of water, is the main reason for charging water. Now, from my perspective, I believe that if we do not take corrective measures, water will not only be a commercial good and attractive to large business sectors, but will also become the most scarce good on the planet.
This sounds really promissing.