Regarding this contract, it is financially settled. So there is no actual delivery of water, and it merely offers you an exposure to already existing prices of water in California.
Meanwhile the reality of the average person on this planet doesn't have anything to do with the reasons for the largest trades on "the markets". So are those trades irrelevant for your general opinion or those people?
"The market" has become a sick abomination of capitalism. Trades are being made by people or machines which have nothing to do with the actual products. Absurdly complex products made even the trading process some sick meta-thing.
And you say this is reality? This is the reality the market CREATES not the reality it is supposed to reflect.