Income-Trader

It acts a bit like insurance or a hedge against the effects of weather on agriculture, energy, or other businesses.

I saw an interesting article about generating windmills in Spain (I think it was). A coming storm was going to have the windmills producing so much more energy it was lowering the spot price for electricity driving down profits from those that generate using fossil fuels.

A weather future could hedge against that.

But those are rather new and very risky of course unless you have a business affected by the weather and it is hedge.

I can’t see where speculators can think they can predict the weather.