13 May 22

Water trading update – May 2022

The last time that the price of temporary water was at the current levels was at the end of the 2016/17 water season.

Two and half years later, in the summer of 2019/20, the price of temporary water in all of these markets was between $500 to $1,000 per ML. Things can turn quickly and it may not be long before permanent water purchased today will pay dividends.

The Elders Weather outlook forecasts multiple cold fronts across southern and eastern Australia from 18 to 22 May and 31 May to 4 June.

The cold fronts are expected to bring widespread rain. In Western Australia (WA), the strongest cold fronts will start from 18 to 22 May and again from 29 May to 2 June.

Permanent water

The price of permanent water has stabilised in most valleys in the past few months. There has however, been renewed buying activity of permanent water in the trading zones ‘Below Choke’, namely SA Murray, VIC Murray 7 and NSW Murray 11.

There is no correlation between the price of temporary and permanent water at present. It would appear that the permanent water price is following a similar trajectory to that of the price of rural land.