Water trading - January update - Elders Rural Services
Elders Water Trading

Water trading – January update

The Elders Weather rainfall outlook suggests multiple cold fronts over the next month starting from 1 to 15 February. These have the potential to produce widespread rain over southern and eastern Australia. In the West the strongest cold fronts are expected between 3 to 7 February and 12 to 16 February.

The price of temporary water in these markets continues to soften on the back of strong inflows into Southern Connected Murray Darling Basin storages with the Bureau of Meteorology (BOM) predicting February to April rainfall likely to be above median for parts of northern and eastern Australia.

Prices

Water MarketTemporary (per ML)
Murray (Below Choke)$85.00 to $90.00
Murray (Above Choke)$50.00 to $555.00
Murrumbidgee$35.00 to $40.00
Goulburn$65.00 to $70.00

Allocations

Trading regionEntitlement TypePercentage
NSW MurrayHigh security100%
General security100%
NSW MurrumbidgeeHigh security100%
General security100%
Vic MurrayHigh reliability100%
Vic GoulburnHigh reliability100%
SA MurrayClass 3 (irrigation)100%

Permanent Water

The price of permanent water has increased in most valleys over the past few months. Elders has sold more than 4,500ML of permanent water in the past three months and the market has increased by 25 per cent for some classes of water entitlements within this short time frame.

table-permanent-water-january-2022
Table showing prices of permanent water by zone as at January 2022

Pricing per zone

Murray

On 15 January, the Northern Victorian Resource Manager (NVRM) announced an increase in allocations against Victorian Murray Low Reliability Water Shares to 72 per cent (pc). This is an unprecedented announcement as this class of Water Share has received an allocation in only one other water season (ie: 5 pc in 2016/17). The majority of this water is likely to ‘spilled’ out of water accounts and become unavailable, but this is still an indication of the large volume of water currently within the system.

Graph showing Murray Above Choke temp water prices 1 November to 10 January
Graph showing Murray Above Choke temp water prices 1 November to 10 January.

Data provided by: www.waterflow.io

Graph showing Murray below choke temp water prices 1 November to 10 January.
Graph showing Murray below choke temp water prices 1 November to 10 January.

Data provided by: www.waterflow.io

Goulburn

The new trade rules in place from 1 July 2021 will mean that it is unlikely that water will be able to be transferred from Goulburn to Murray for the remainder of the season. The excess of water within this valley will continue to place downward pressure on the price.

Graph showing Goulburn temp water prices 1 November to 10 January.
Graph showing Goulburn temp water prices 1 November to 10 January.

Data provided by: www.waterflow.io

Murrumbidgee

The volume of water that has been allocated within this valley in addition to the number of unexpected rain events has meant a huge volume of unused water at this point in the season. The end of 2016/17 water season saw temporary prices as low as $3-5/ML which reflected the amount of that was unable to be ‘carried over’ and was to be lost by water account holders. The same conditions seem to be in place this season.

Graph showing Murrumbidgee temp water prices 1 November to 10 January
Graph showing Murrumbidgee temp water prices 1 November to 10 January.

Data provided by: www.waterflow.io

 

For help with your water needs contact the Elders water trading team on 1300 220 214.

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