WEEKLY WATER UPDATE 22/09/2021
Markets have overall been in a steady phase since the last round of allocation announcements, partly because of the trade restrictions between varying zones but also mainly due to water balances (supply) continuing to accrue in the spring months. Summer planting windows for annual crops are imminent which may also be having a factor on how much activity overall is being seen in the allocation markets.
The Murrumbidgee position will be closely watched in the next 4-6 weeks as usage will continue to build and therefore, based on all communications to date from the DPIE, allow for the potential of G/S allocations to pick up on captured and stored inflows. The forecast still looks very promising so the question that cant be answered until the point in time is how much inflow recorded will be available for G/S allocation improvements. Off-allocation usage, which has been extended out until the 28th of this month, zone depending, will also be a material factor in the improvement of G/S allocations. Usage to date (as reported by water NSW) for the Murrumbidgee has been ~110GL, off-allocation usage which is not reported in these numbers could be as much as a further 100GL of usage for the valley
Murray valley inflows have surged upwards to repay all environmental accounts and quickly accrue against G/S as seen last week with the 14% allocation increase in NSW and similar increase across Vic entitlements. This momentum will continue for at least another month without consideration for any major weather events that provide further run-off to the catchment in the interim. It would not be a bullish remark to suggest that Murray allocations exceed Murrumbidgee allocations in the in coming months, the continual question mark is still around spill volumes as these also provide further benefit to NSW licence holders this season, in a period where all storages are effectively full it is hard to comprehend why spill volumes cannot be released to the public in real time
The MDBA is reporting that some volume of water is moving between the choke system on the Murray, however these volumes not material to provide a market movement entirely between the trading zones. No updates shared on the position of the Goulburn and Murrumbidgee IVT’s and I don’t believe the market will see one for a period of time just yet.
Allocation markets:
Murray River below choke - $125
Murray River above choke - $95
Goulburn – $100
Murrumbidgee - $100
Lower Murrumbidgee Z3 Groundwater – $90 - CALL
Sellers sought for Temporary Supplementary within MIA and River – CALL to discuss – 1500ML
Buyers for Murrumbidgee Deferred delivery, Feb ’22 delivery, bids at $100 - CALL
Permanent Entitlement markets:
FOR SALE: 34ML MIA High Security - $7,500/ML inclusive of 21/22 allocation
FOR SALE: 3,000ML Murrumbidgee General Security - $3,000 wet
FOR SALE: 1,050ML Murrumbidgee High Security - $8,250 wet
FOR SALE: 300ML Lower Murrumbidgee Zone 2 Groundwater DRY – $4,000
Murrumbidgee High Security – offers at $7,500 wet
Murrumbidgee General Security – offering $2,400-$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
