With only 4000 ML of water traded so far this year in the Lower Murray Darling Basin (figures from Tom Rooney's WaterFind) there appears to have been little action in the Water Market so far this year. We think people are sitting on the fence at the moment, what with virtually no allocation across the Lower Basin and the embargo on Murrumbidgee water being traded out of the valley!
Remember over 388,000 ML was traded out of the Murrumbidgee Valley last season - an ongoing embargo is sure to impact the price - higher in other parts of the Basin and conversely potentially lower in the Murrumbidgee Valley! This amount of water equates to about 40% of all water traded last season!
Storages are tracking fairly closely to last year, however we suspect a significantly higher amount of water in storage is 'carry - over'. This, of course, will impact on seasonal allocations for this year!
In our next posting we will provide a snapshot of the range and directing for water prices this season, according to the charts. Of course we have the influence of the fundamentals of the Water Market - commodity prices - what can a dairy farmer afford to pay for a ML of water. Is it the same price as a tonne of barley, as one experienced operator said recently, when asked.
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