CME Group has announced today that it is expanding its suite of weather products to include the Australian cities of Melbourne, Sydney and Brisbane. It’s the first time they’ve supported trading of weather products in Australia. The contracts will go on sale on the 23rd February and include temperature based products of heating and cooling degree day contracts on both monthly and seasonal futures and options.
It’s good to see the continued expansion of weather products to new regions, especially a country such as Australia where extremes of temperature are common and can have debilitating effects on industries such as agriculture, tourism and travel. We expect to see other providers of more niche weather cover move into the area to offer weather derivatives and insurance which can now be backed up by these contracts.
Read the full press release on the CME Group website.