[bluedevil2k]

This is a unique commodity in that it literally falls from the sky. I don’t believe we have any tradable commodities that can be obtained, rather easily, for free. Yes, I know we’re talking about massive amounts of water and aquifers, but I can picture Wall Street banks setting up huge rain catchers and desalination plants to try and profit from this market.

[andrewmcwatters]

Potable water and desalination is a very expensive problem.

[ghshephard]

Desalination @$0.45/m^3 from Hyflux (Singapore Contracts) would be $554/acre foot - roughly the price we see on the spot markets.

[gumby]

That isn’t how commodity markets (which aren’t on wall st btw) work. The traders don’t now frames or, except by mistake, barges fill of coal; they sit in the middle and rarely touch it.

A farmer can sell their crop before it has grown to improve cash flow, chocolate companies can buy cocoa that they will need next year so they have a predictable price and these guys sit in the middle.

[bluedevil2k]

I didn’t say commodities traded on Wall Street, and I know usually they’re middlemen.

I’m saying Wall Street banks are the kinds of investors to sell delivery contracts and then find a way to gather water cheaply and actually deliver it (for a nice profit). Banks aren’t always just middlemen.

[malloryerik]

The contract is cash-settled so there's no opportunity to pipe in water like that.

[octoberfranklin]

Actually in many Western states (Oregon for one) it is illegal to capture and store rainwater. There is one narrow and very recent exception for capture using the roof of a permitted dwelling, but if you build a pond or a lake or any kind of structure for rainwater collection purposes you are in fact breaking the law.

Water rights are bonkers-crazy.