In the case of rainfalls, the most proper computation structure for the indices would be that under the form of some averages regarding the levels of rainfalls in certain areas and their intensity (the maximum in a certain period). The wind speed could be at its turn a basic asset for agriculture, the in-
dices being calculated in a similar manner as the previous ones. For the farm operators, the value of these indices should be found at a low level. Another support asset could be considered the number of shiny days. It
is well-known the fact that the lack of sun during some phases with reference to the development of some wine crops influences the grapes quality. As far as the index on shiny days is concerned, the farmers will benefit from a high level of this one. For the creation and the successfully managing of these contracts, it is
of great importance that the weather data collection centers be independent from the parties involved in the contracts in order to ensure the market trans- parency and to give a feeling of trust with regard to these financial instru- ments. Moreover, in order the make possible the evaluation of these assets, it is necessary a historical data base. In addition, one cannot imagine a market in which the operators should have confidence in without the development of evaluation models.
As the farming sector is characterized by the fact that a single crop is
affected by more factors in a different way (humidity, temperature, rainfalls), the most appropriate solution would be that of building some weather deriva- tives for which the support be a complex of the involved factors. An important element linked to the weather derivatives refers to their transparency. This must be ensured by offering those who transact on these markets the relevant information, connected to the indices determination: the location (the meteorological station) where the contracts are traded, the con- tract’s parameters, the modality of calculation and the frequency. Although it is mentioned that the weather risk can be transferred into the
market to some speculators, we can imagine a situation in which this one can be targeted towards those companies in sectors characterized by divergent risks with regard to the same meteorological event. An important perspective in this respect, for the farming sector in Roma-
nia, refers to the possibility of simultaneously covering the risks in the hydro- energetic sector and in the agricultural one. As the companies in the hydro- energetic industry depend both on the temperature and on the rainfalls, one can imagine contracts that encompass the two types of meteorological phe- nomena. In addition, taking into account the fact that risks regarding rainfalls and temperature in agriculture are compensated with those in the mentioned industry, one can appreciate that there is the possibility of ensuring a mini- mum initial liquidity of the weather derivatives market by writing contracts for the actors within the two sectors. Also, under the conditions of existence of indices regarding the global
heating, there can be shaped weather derivatives contracts for the covering of 136
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