H2OX Water Market Report – Southern Basin

Market Commentary

  • Forecast hot conditions over the next week has pushed allocation prices higher as farmers look to secure additional temporary water
  • Over recent days, much of the Southern Murray Darling Basin has been more than 12 degrees above average, a map of temperature anomalies can be viewed here
  • Management of the $2 Billion irrigation modernisation in Victoria, has been stripped from Goulburn Murray Water and handed to the new “Project Control Group” led by consultant Mike Walsh and including Richard Anderson from the VFF. Read about it here
  • The Victorian Government is telling farmers to prepare for an April autumn break, with the caveat that autumn is the least reliable period for long range weather forecasting. Read about it here
  • The Victorian Government has placed its first order from the state’s desalination plant as urban storages drop. The government has ordered 50GL of water to be delivered later this year. Read about it here
  • Global Dairy Trade has seen it’s first positive result for the 2016, up 1.4% read about it here

Water Asset Prices

Allocation Markets (spot price)

?Market

?$/ML

?Allocation

?Direction

?Goulburn

?$230

?90%

Up

?Vic Murray

$230

?100%

Up

?NSW Murray

?$220

?97% & 23%

Up

?SA Murray

$230

?100%

Up

?Murrumbidgee

$210

?95% & 37%

Up

Entitlement Markets (spot price)

?Market

High?

?General/Low

?Direction

?Goulburn

?$2800

?$225

Steady

?Vic Murray (7)

?$2800

?$250

Steady

?NSW Murray (11)

?$3400

?$1300

Steady

?SA Murray

?$2800

?N/A

Steady

?Murrumbidgee

?$3300

?$1350

Steady