Try as you might, you can't store a hot July day until December. You can't transport a Houston rainstorm to the Pacific Northwest either. Weather Risk is localized. There are few, if any, benchmark indices in weather that have commercial meaning to broad markets. There is no analogy in weather to natural gas at the Henry Hub or electric power at the COB Interchange.
Physical weather is completely beyond human control.
It can't be influenced, modified or manipulated by regulation, speculation, cartels, major market players or mass market dynamics. Everyone gets the same raw deal in weather, because Mother Nature doesn't bargain. Weather Risk Management Everyone knows you can't change the weather. One-hundred years of scientific research has proven that you cannot forecast the weather beyond a few days with enough accuracy to support sound commercial decisions. However, if you cannot forecast the weather beyond a few days with enough accuracy to support sound commercial decisions.