Mixed forecast

Structured products

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Weather derivatives were touted as the next big thing when they burst on the scene in the late 1990s. Here was a way for utility companies to hedge against reduced energy consumption in warm winters; for insurance companies to protect themselves against multi-billion-dollar claims in the wake of devastating hurricanes; and for agricultural firms to hedge against low crop yields caused by above-average rainfall.

In fact, nearly every business is affected by the weather in some way: cold, wet S