WEEKLY WATER UPDATE 22/02/2022
As we head towards March the market is starting to reflect the wind-down in buyer demand as summer crops come in, and with potential for 30-50mm of rain in the next 7-10 days locally through the Murrumbidgee valley this may speed up that late watering. As a result price is easing and overall activity in the spot market is very steady going.
This is a similar trend in all other areas with possibly some continued support for a little longer in the lower Murray regions from buyers of temporary allocation. Carryover markets are trading steadily with Murrumbidgee leading the way at $120/ML, whilst above choke Murray markets have traded at $85 this past week.
Forward water is available at $120/ML and finding buyer interest in the Murrumbidgee.
Current allocation markets are priced as:
Murrumbidgee: $20
Murray (below choke): $25-$30
Goulburn: $65 (allocation holders are hoping for a late season IVT however still a large amount of uncertainty in terms of timing and space)
Murray (below choke): $70
There are murmurs or hopes for an IVT from either the Murrumbidgee or Goulburn this autumn. Based on current river flows, and the immediate forecast for mostly better than average rainfall through autumn then the requirement for inter-valley transferred water is negligible, or a low probability of occurring. The balance of Murrumbidgee account is now -120GL and likely to continue moving further into the negative territory, this would mean that based on today’s balances there would be need to be ~45GL of back trade or delivered water which makes it even less likely to open again this season.
Last week the Victorian water authorities outlined their allocation projections for next season, this was broadly summarised as being very positive with full allocations expected during spring for the Murray and early summer for Goulburn. The one to watch will be the volume of water that is carried over on Vic accounts this season, indications are that there will be equal if not more allocation carried across from this season to next when compared to 12 months ago.
Market Opportunities:
Forward Water Available:
Murrumbidgee - $120/ML – Sep ’22 delivery
Murray (above choke) - $125/ML – Aug/Sep ’22 delivery
WANTED: Zone 1 Murrumbidgee Groundwater Carryover space - CALL
WANTED: 100ML Murrumbidgee High Security DRY - $8,600/ML
FOR SALE: 300ML NSW Murray General Security (above choke) – incl. 100% seasonal allocation – asking $1,875/ML ONO
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
