Veles Weekly Report Archive
September 16th 2021

NQH2O was down $41.04 or 4.49% to $873.

Technicals are showing a price reversal in Californian water.

Near month futures offered at a discount to the index.

The futures volatility is lower than the index volatility.

Satellite picture shows frontal conditions moving towards N California from the NW Pacific.

Topsoil still very dry in North Western US.

Here is what is in the one Trillion dollar Infrastructure for Western Water.

Google sets new water goals.

Zero mass water. Why all the hate?

Water crisis could lead to conflict in Middle East.

Johannesburg can no longer rely on its water supply.

Chile seeks to guarantee water rights.

September 9th 2021

NQH2O price down $4.48 or 0.49% to $913.97. Up 82% YTD.

Near Month futures at discount to index for first time since March.

Cyclone of Mexican coast may bring precipitation to CA.

Desalination may increase household water bills.

El Paso County to use ‘Endless Water Loop’ to fight future water shortages.

Reno using ‘smart’ irrigation scheduling.

Flagstaff AZ had 3rd wettest Monsoon rainfall on record.

Blue Bonds need new standards.

Belize moves to restructure its bonds, including marine assets.

Dispute over Krishna water.

Investment is enhancing water security in Western Australia.

September 2nd 2021

NQH2O taking a breather, down $17.77 or 1.90% to $918.45. Up 83.75% Year To Date.

Time to talk about managing Water Risk.

Establishing a desalination plant jointly operated by US and Mexico could help bolster resilience in Colorado River Basin.

Scientists to use radar, balloons and cameras to collect water data in SW by monitoring Colorado snow areas.

Arizona stored water to help shortages. What happens when we start using it?

 

Digital Tech to help African Island States cope with climate change.

August 26th 2021
NQH2O new record high of $936.22. Up 87.31% Year to Date. Farmers face $10000.00 a day fines if they pull water from rivers in CA. Risk of Sacramento- San Joachim Delta becoming too salty. Almond farmers may have to let trees die. Capture of storm water runoff to become a new important source of water. Derivative trading in water can help US manage drought. Benefits of water futures trading explained. PERC calls for expanded use of water markets. A system based approach to water is a necessary condition to approach water climate related risks seen in US, Mid East and Brazil.
August 19th 2021
NQH2O up $23.14 or 2.57%. September Futures are new front month and trading at $8.46 premium. One week futures volatility below index volatility indicating price consolidation. Is Water Risk being priced? Water shortage declared in Colorado River for first time. Impact Finance in water is about to get big. Discussing Green versus Grey infrastructure. Pumping groundwater not a long term solution to drought. Facebook unveils Water Projects to support $800m Mesa data centre near Phoenix. Productivity Commission says reporting of foreign ownership in Australian water is sufficient. $90m of new water projects in Southern Australia. Singapore uses advanced system to turn sewerage into drinking water.
August 12th 2021

NQH2O up $8.07 or 09.% to $900.40 up 80.14% YTD.

Futures have been trading at a $10-$24 premium to the index.

One week Futures volatility has reversed and is now higher than the index volatility, indicating potentially more volatility to come.

December Futures offer negative $96 to August Futures bid implying significant seasonality in the price.

Monsoon activity has being bringing relief to the SW, with Tucson AZ receiving more rain in 5 days in July than in whole of 2020.

Westland Water District and Environmental Groups align in looming fight over water rights.

Food prices increase due to drought.

Can CA handle another year of drought?

World Bank signs $250m project to add resilience to India’s existing dams.

Blue Bonds a new form of finance.

August 5th 2021

NQH2O up 78.53% year to date.

One week futures volatility reverses to a discount to the index indicating possible price consolidation.

NQH2O index at new all-time high.

Exceptional drought conditions increased by 13.07%, mostly in the Central Valley.

Washington topsoil moisture 99% short.

 

Loans and grants being used for drinking water and wastewater projects.

July 29th 2021

NQH2O price unchanged at $842.38 Near month futures at a premium of $28-$31 to index. August futures bid price $57 higher than the December futures offer price. Near term futures and index volatilities converge further indicating price stability. Water released from Flaming Gorge reservoir in Wyoming and Utah to boost Lake Powell for purpose of guarding hydropower. Thousands of Central Valley farmers may lose access to surface water. 154 primary intrastate reservoirs gain 1.7m Acre Feet of seasonal melt, 20% of average. More companies citing water scarcity as a financial risk in regulatory filings. Most companies underestimate their water consumption cost by 3-5 times the true cost. Companies facing most water risk are food, beverage, tobacco and consumer goods. Tucson AZ water management is a model for other cities. Saudi Arabia suspends privatisation of Desalination and Power plant. Global water crisis unleashing Tsunami of Watertech.

July 22nd 2021

NQH2O up $21.52 or 2.62% to $842.38. Various signals of price stabilisation. Near term volatilities converging between index and futures providing more indications of
price levelling. 
WaterBanks are
a tool for climate resilience. 
La Nina could dash hopes of rain this winter. Monsoon promises much needed rain in short term in parched West. Farmers and ranchers in Utah have cut water use by 70-75%. Historical data no longer a reliable guide to future conditions. 

July 15th 2021

NQH2O futures premium reduced from $20 to $6. CA Diamond Valley lake which is an emergency storage reservoir is 80% full. Drought caused a 13% reduction in Almond production. Massive water recycling proposal could help relieve drought conditions.

 

July 8th 2021

NQH20 up $2.21 or 0.26%. Water Risk likely to be 3 times Carbon Risk.

July 1st 2021

NQH2O price eases by $18.61 to $839/AF. Biden Infrastructure Bill to help water storage and drought..

June 24th 2021

85,44% of CA in Extreme Drought. NQH2O down $0.94 to $857.61. July futures at $60 premium.

June 17th 2021

Western US driest in 1200 years. December future offer $128 below July Future bid.

June 10th 2021

Light rain possible in N CA. Lake Mead water conservation ICS project working. NQH2O Sep Futures offer $35 below the July bid price.

June 3rd 2021

The First Water Price Curve is Developing. NQH2O down $10.29 to$856.71. Water Allocations cut from 5% to zero.

May 27th 2021

Central Sierra Mountain snow has all melted. SW US soil driest since 1895. Wildfire Alert. NQH2O at $867.

May 20th 2021

NQH2O takes an $8.00 downward breather this week to $869.36 but still on course to $1070. Both Tulare and North Sierra Precip Indexes 2nd driest on record

May 13th 2021

Extreme drought conditions now encompass 73.31% of CA. NQH2O hits new all time high at $877.36

May 6th 2021

NQH2O up a further $8.53 to a new high of $877.05. Futures premium to index decreased by $40. Central Valley April Rainfall at 17% of average

April 29th 2021

NQH2O at New All Time High of $868.7 up73.8% Year to Date . Technical analysis indicating next level could be $1070 

April 22nd 2021

CA Governor declares drought emergency in 2counties, NQH2O up $40 to $831.97, light rain in week ahead

April 15th 2021

Snow Water Equivalent (SWE) at 37.33%of 20 year average

April 8th 2021

H2O Futures trade at a high $820 for the week. Sierra Snowpack well below average. Reservoir storage also worryingly low.

April 1st 2021

NQH2O up 12.57% to $772.10. DWR snow survey is disappointing. 

March 25th 2021

DWR Issues Allocation Reduction for the State Water Project. NQH2O up 29.52%

March 18th 2021

The March Futures Contract has settled at $529.58. With Aprils contract now the front month, will we see if the influence of summer irrigation deals effect NQH2O and the Futures.

March 11th 2021

California see’s some much needed precipitation. How will this effect drought conditions in the state.

March 4th 2021

Lake Oroville at only 38% capacity. 2021 looks to be the 3rd warmest on record.