Terra Ag Weekly Water update - 6th September 2021
A significant weekend across the catchment in terms of rainfall events, total of significance:
Griffith: 24.6mm
Burrinjuck: 75mm
Canberra: 49.4mm
Khancoban: 93.8mm
Falls Creek: 84.4mm
Airspace releases are now underway for Burrinjuck and Hume Dams, 10GL and 25GL respectively, for the coming week. We anticipate this will translate into an extension of the supplementary event for another 7-10 days beyond current timings (and possibly longer for the Murray on the strength of stream flows below the Hume dam).
On the Hume specifically, airspace releases will contribute to spill water which is current being debited against he Barmah Environmental borrow, based on early guidance from the MDBA this release could contribute up to 100-150GL of spilled water for the Environmental payback. Therefore we expect to see much improved allocations in the coming 5 weeks for the Murray valley entitlements. It’s too early to call with any confidence but Hume spills will at some point place an increased risk on Vic carryover allocations – how much at this point is not worth speculating – see link below
Usage is slowly picking up in the Murrumbidgee mostly for winter crop watering. As the summer planting window is quickly approaching focus will be on the immediate weather forecasts in the next 4-6 weeks. Sunrice has filled its contract for 100kt @ $400/t. Cotton continues to firm into $615-$630. Summer crop revenue prospects are looking very strong, how much crop is planted now the main focus for allocation markets in the coming 6-8 weeks
Operationally, the market relationship between the river trading zones is still independent with no clearer indications of how much/when the Inter Valley arrangement will take place. At this stage the best known information is that Murrumbidgee IVT opportunities are likely from summer onwards, and for much is unknown at this stage. For the Goulburn, indications are for spring deliveries up until December for the market to take opportunities before closing off for the remainder of the water season.
Allocation markets:
Murray River below choke - $140
Murray River above choke - $100
Goulburn – $100-$110
Murrumbidgee - $112 (last trade 04.09.2021)
Lower Murrumbidgee Z3 Groundwater – asking $100 - CALL
Sellers sought for Temporary Supplementary within MIA – CALL to discuss
Buyers for Murrumbidgee Deferred delivery, Jan/Feb ’22 delivery, bids starting at $110 - CALL
Permanent Entitlement markets:
FOR SALE: 3,000ML Murrumbidgee General Security - $3,000 wet
FOR SALE: 1,050ML Murrumbidgee High Security - $8,000 wet
FOR SALE: 300ML Lower Murrumbidgee Zone 2 Groundwater DRY – $4,000
Murrumbidgee High Security – offers at $7,300 wet
Murrumbidgee General Security – offering $2,350-$2,450 wet
Murray (above choke) General Security – offering $1,700 wet
As always, please call to discuss any enquiries or requirements you have.
Regards,
Grant Volz
Director – Terra Ag Rural Agencies
Unit 30, 16-24 Whybrow St, Griffith NSW 2680
M: 0418 916 031
F: 02 6964 6095
