The 2022-23 water year has been characterised by high water availability across the Murray-Darling Basin (MDB). In the southern connected MDB, the temporary water market has witnessed low prices and trade volumes compared to previous years (figure 1).
As the tail end of the season approaches and storages and water accounts remain close to full, we’ll see more competition for carryover parking space into the next season. Water users are currently weighing their options – buy carryover space, sell the remaining allocation now and/or purchase forward water for the next year, or a mix of these.
The first outlook for the 2023-24 season forecasts that in the Victorian systems, high water availability is likely to continue next year.
Figure 1
In contrast, the southern MDB permanent water market has remained strong throughout the season. Many entitlements have been trading at record prices as many irrigators and other water owners have had ample capital to deploy. This goes to show that the permanent water market is more driven by long-term drivers and objectives, and the softness of the temporary market does not necessarily have an impact on entitlement prices.
The Australian Government’s announcement this week on strategic water buybacks in Queensland and New South Wales may put may put pressure on entitlement prices in these catchments.
Figure 2
Water market update by Simo Tervonen using Waterflow™: February 2023
Thanks to the water market intermediaries who are increasing the transparency of Australian water markets by providing data to Waterflow™ (in alphabetical order): Elders, H2OX, Key Water, National Water Brokers, Ruralco Water, True Blue Water Exchange, Waterpool Co-op and Wilks Water.
Have you checked the water market lately? Waterflow™ makes it easy with the most comprehensive water market coverage in Australia. And it’s all free for registered users. Visit https://www.waterflow.io/
Got suggestions? Do you have suggestions for how we can make Waterflow better? What markets should we cover next? Are you interested in providing data? Let the Waterflow team know: waterflow@marsdenjacob.com.au.
About Waterflow™. Waterflow™ is your up-to-date, free, independent source of water market information for the Murray-Darling Basin. Waterflow™ brings together water market information from eight leading water brokers, industry bodies, and data sources into a single, easy-to-use platform.
Published February 24, 2023
