WEEKLY WATER UPDATE 27/01/2022
Allocation markets have eased considerably across the month of January on the back of some very large, and localised, rainfall reports. In the key irrigation areas in the Murrumbidgee Valley local falls up to 200mm have been recorded for the month to date and more to follow for the remainder of this week.
Therefore allocation usage and demand is likely to wrap up much earlier this season and could be as soon as in the next 4-6 weeks, where rainfall has been less prevalent there are common reports of lower usage due to the cooler summer on the average
This early summer crop watering finish will place great uncertainty on carryover availability, pricing, and preferences for anybody looking to carry water into next year across the Murrumbidgee and Murray valleys
Longer term weather models are suggesting average to slightly better than average rainfall right through until the mid-winter, whilst this will change it does highlight the benefit of momentum that a La Nina brings. Rain = continued rain.
Current allocation markets are priced as:
Murrumbidgee: $30
Murray (below choke): $75-$80 depending which side of the river you are on
Goulburn: $70 (allocation holders are hoping for a late season IVT however still a large amount of uncertainty in terms of timing and space)
Forward markets are starting to show life with recent trades completed at $150 in both the Murrumbidgee and Murray (above choke). Lower Murray bids been accepted at the $185-$190.
Carryover markets are trading earlier this season with Murrumbidgee dealt at $120 and Murray (above choke) bid at $80. Lower Murray bid at $120 but no real movement from market players there just yet.
The relevant water authorities will provide their indicative forecasting for opening season allocations next month, naturally a lot of eyes waiting for these numbers however confidence for a good allocation to open the season should be high.
Market Opportunities:
FOR LEASE: 3,000ML Murrumbidgee G/S Entitlements, 3 Years with option to extend negotiable, commencing 1 July 2022 – Call to discuss in more detail
FOR LEASE: 3,000ML Murrumbidgee H/S Entitlements, 3 Years with option to extend negotiable, commencing 1 July 2022 – Call to discuss in more detail
Forward Water Available:
Murrumbidgee - $150/ML – Aug/Sep ’22 delivery
Murray (above choke) - $150/ML – Aug/Sep ’22 delivery
WANTED: Carryover space (Murrumbidgee and Murray Above choke) - CALL
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 $1,850/ML ONO
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
