Weekly Water Update - 1 Sep 2020
Allocation announcements this morning released as follows for NSW related systems:
Murrumbidgee River G/S +12% increasing to 44%
NSW Murray River G/S +4% increasing to 12%
VIC Murray +8% increasing to 32%
VIC Goulburn +7% increasing to 47%
Allocation markets this morning are yet to react to this morning’s allocation release – indications suggest the market could fall back to $120-$130 at some point in the coming days, last trade was completed at $150
Further south, similar story in the Murray river with markets likely to find buyer support around $150-$160/ML on the back of the 4% release
As we approach summer crop planting windows allocation buyers are appearing well covered for requirements with improving allocations, winter crop watering has benefitted from a well timed supplementary event further enhancing water availability in the system for summer crop intentions
Permanent cropping demand will start to build form here onwards and will likely see a majority of the carried over water find its way to these crops as warmer weather approaches thus assisting supply
NSW Water released a statement last Friday in relation to the Murrumbidgee storages and the risk of spill now apparent with dam levels above 80% - translucent releases are underway however this morning’s announcement suggests that allocation is being run forward of inflows to also assist in management of the spill risk, interestingly a further 40GL was set aside for next season’s H/S and Carryover requirements. If dam levels continue to push upwards towards 90% this could see General Security allocations receive another boost in deliberate move to manage spill risk – watch this space in the coming 6-8 weeks
Permanent markets, all areas, are firming with buyer interest of note in the following zones:
Murrumbidgee High security - $7,500 wet
Murrumbidgee General Security – offering $2,060 wet
Murray (above choke) General Security – offering $1500-$1550 wet
Dam Levels:
Current Opportunities – All Enquiries Welcome
Permanent
66ML Murrumbidgee Irrig. H/S DRY - $7,400
75ML Murrumbidgee Irrig. H/S DRY - $8,250
25ML Murrumbidgee Irrig. H/S DRY - $8,500
155ML Murrumbidgee Irrig. SUPPLEMENTARY WET - $800
300ML Lower Murrumbidgee Zone 2 Groundwater DRY – $4,500
800ML Lower Murrumbidgee Zone 3 Groundwater DRY – Make an Offer
