Terra Ag Water Market update - 17th July 2023
Mid-monthly announcements released today as follows:
Murrumbidgee General Security: NO CHANGE - 37% (High Security 95%)
NSW Murray General Security: INCREASED TO 110% (High security 100%)
Vic Murray: INCREASED TO 88% (+8% increase)
Goulburn: 100%
With Murrumbidgee storages full and airspace releases ongoing for Blowering Dam there has been no incremental improvement in General Security allocations this fortnight. This announcement has a very similar tone to 12 months ago and the year prior to that – until demand increased to create airspace for future inflows to be held there will not be an expected improvement in the General Security allocation. Compounding this position with the current weather outlook is the placement and timing of future inflows held in storage – at some point this season the DPIE will need to consider 24/25 seasonal needs and what level of water to hold back for next season. Early season inflows should alleviate this problem, later season inflows may need to be held back.
Murrumbidgee IVT is currently OPEN – water NSW has announced that this IVT balance will be spilt on 14th August allowing for further trade into Murray system
NSW Murray resources moved to full allocation as expected
Vic Murray resources bumped up to 88% - not much to add here
Allocation markets this afternoon:
Murrumbidgee: $90 (bid) and $110 (offer)
NSW Murray (above choke): $65 (bid) and $80 (offer)
Vic Goulburn: $65 (bid) and $70 (offer)
Vic Murray (below choke): $90 (bid) and $95 (offer)
Vic resource announcement this morning confirmed that no spillable account deductions will be notified until August – this being due to Hume Dam currently undertaking Airspace releases.
Market Opportunities – Water for sale:
Murrumbidgee: $110/ML (firming)
NSW Murray (below choke): $110/ML (firming)
Vic Murray (below choke): $100/ML (steady)
Vic Murray (above choke): $80/ML (steady)
Forward Water/Deferred Delivery for sale (current season):
Murrumbidgee - $150/ML – Oct/Nov ‘23 delivery – CALL
NSW Murray (above choke) - $100/ML – Jul/Aug ‘23 delivery – CALL
Vic Goulburn - $110/ML – Jul-Sep’23 delivery
Vic Murray (below choke) - $130 – Aug/Sep ’23 delivery
Regards,
Grant Volz
Director – Terra Ag Rural Agencies
369 Thorne Road, Griffith NSW 2680
M: 0418 916 031
F: 02 6964 6095
