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Environmental Finance, the monthly magazine covering the impact of environmental issues on lending, insurance, investment and trading decisions, have published an interesting news article on the weather derivatives market today. The article shows that the recent hot weather across the U.S., which resulted in the fourth warmest July on record, has impacted weather derivatives trading […]

We wrote last week that some weather traders are taking advantage of the recent heat wave across the U.S. to profit from making the right choices with their weather derivative contract purchases. The high temperatures caused some weather derivative contract prices to soar on the Chicago Mercantile Exchange (CME) allowing traders to cash in.

The U.S. has been suffering from unusually high temperatures, dry weather and heatwaves across many regions in recent days and weeks. High temperatures mean weather traders are busy as companies and traders seek to hedge their weather risks using instruments such as weather derivatives.