Welcome to our Water Market Update for the week beginning 27 February 2023.
Federal Government Water Buyback
On Friday, after much talk, the federal government announced their 49.2 gigalitre (GL) “Bridging the Gap” voluntary water buyback. The goal of the buyback it to obtain the remaining 49.2 GL of entitlement required to meet the target set under the Murray Darling Basin Plan.
Buybacks will take place in the following regions:
- NSW Murray (surface water) – 10 GL
- Namoi (surface water) – 9.5 GL
- NSW Border Rivers (surface water) – 5.1 GL
- Barwon Darling (surface water) – 1.6 GL
- Lachlan (surface water) – 0.9 GL
- Condamine- Balonne (surface water) – 14 GL
- Condamine- Balonne (groundwater) – 3.2 GL
- ACT (surface water) – 4.9 GL
There is no indication of any buying activity in any other valleys and the government will not consider tenders from any valleys outside those set out above.
Strategic purchasing will commence via tender on 23 March 2023, through the AusTender and will close on 26 April 2023. The tender process will ask for details about the water entitlements you would like to offer, including the volume, evidence of ownership arrangements, right to sell and the price being offered. The Commonwealth has not engaged any firms or other third parties to act on its behalf to acquire water entitlements.
For further information, please visit the website of the Department of Climate Change, Energy, the Environment and Water.
Allocations
Current allocations are as follows:
| Zone | Allocation | 1 year ago | +/- per cent |
| Murrumbidgee | |||
| High Security | 100 pc | 100 pc | Same |
| General Security | 100 pc | 100 pc | Same |
| NSW Murray (Zones 10 and 11) | |||
| High Security | 100 pc | 100 pc | Same |
| General Security | 110 pc | 110 pc | Same |
| Lachlan | |||
| High Security | 100 pc | 100 pc | Same |
| General Security | 115 pc | 125 pc | - 10 pc |
| Vic Murray (Zones 6 and 7) | |||
| High Reliability | 100 pc | 100 pc | Same |
| Low Reliability | 100 pc | 100 pc | Same |
| SA Murray | 100 pc | 100 pc | Same |
| Murrumbidgee Deep Aquifer (all zones) | 100 pc | 100 pc | Same |
| Lower Murray Deep Groundwater | 100 pc | 100 pc | Same |
| Lower Lachlan Groundwater | 100 pc | 100 pc | Same |
In addition, various enhancements/member benefits have been announced for Irrigation Authority customers. Please contact your Water Authority for terms, conditions and further details.
Supplementary Events
There are some areas where supplementary flows remain active, details of which can be found by clicking the following links:
Trade Restrictions
Murrumbidgee/Murray IVT
Closed for Murrumbidgee to Murray trade with a balance of 85.8 GL.
Barmah Choke
Closed.
Interstate Trading
A temporary restriction on interstate allocation trading into the NSW Murray and Lower Darling and Murrumbidgee remains in place. These restrictions will remain in force up to and including 31 March 2023, unless that date is amended. The order may be repealed earlier if NSW storage levels are reduced enough to create airspace to safely receive traded water.
Storages
According to the Bureau of Meterorology, storage levels are currently as follows:
| Current | 7 Days | 30 Days | 1 Year | |
| Murrumbidgee | 83.1 pc | - 1.1 pc | - 6.5 pc | - 9.8 pc |
| Blowering | 82.7 pc | - 1.8 pc | - 7.8 pc | - 13.2 pc |
| Burrinjuck | 83.7 pc | - 2.0 pc | - 5.6 pc | - 5.4 pc |
| Murray | 93.9 pc | - 0.7 pc | - 1.3 pc | + 1.9 pc |
| Hume | 95.7 pc | - 0.7 pc | + 1.2 pc | + 1.8 pc |
| Dartmouth | 97.2 pc | - 0.6 pc | - 2.4 pc | +4.5 pc |
| Lachlan | 98.1 pc | NIL | + 0.3 pc | NIL |
| Wyangala | 98.1 pc | NIL | + 0.3 pc | NIL |
Current Temporary Market
Indicative pricing is as follows:
| Zone | Buyers | Sellers | Last Trade |
| Murrumbidgee | $10 | $10 | $10 |
| NSW Murray 10 (Above Choke) | $10 | $10 | $10 |
| NSW Murray 11 (Below Choke) | $10 | $10 | $10 |
| Vic Murray 6 (Above Choke) | $10 | $15 | $13 |
| Vic Murray 7 (Above Choke) | $15 | $15 | $15 |
| SA Murray | $10 | $15 | $13 |
| Lachlan | $50 | $50 | $50 |
| Murrumbidgee Deep Aquifer Zone 1 | - | - | - |
| Murrumbidgee Deep Aquifer Zone 2 | - | - | - |
| Murrumbidgee Deep Aquifer Zone 3 | - | - | - |
| Lower Murray Groundwater | - | - | - |
| Lower Lachlan Groundwater | - | - | - |
Current Permanent Market
| Zone | Price per mL |
| Murrumbidgee | |
| High Security | $8,900 to $9,000 |
| General Security | $2,500 to $2,600 |
| Supplementary | $800 to $850 |
| NSW Murray Above Choke (Zone 10) | |
| High Security | $8,000 to $8,100 |
| General Security | $1,600 to $1,700 |
| NSW Murray Below Choke (Zone 11) | |
| High Security | $9,250 to $9,350 |
| General Security | $2,750 to $2,850 |
| Vic Murray Above Choke (Zone 6) | |
| High Reliability | $5,000 to $5,100 |
| Low Reliability | $950 to $1,000 |
| Vic Murray Below Choke (Zone 7) | |
| High Reliability | $7,800 to $7,900 |
| Low Reliability | $1,800 to $1,900 |
| SA Murray Class 3 | $8,300 to $8,400 |
| Murrumbidgee Deep Aquifer (zone dependent) | $8,300 to $4,500 |
| Lachlan (upper and lower) | |
| General Security | $1,400 to $1,500 |
| High Security | $4,500 to $4,550 |
| Lower Murray Deep Groundwater | $2,700 to $2,800 |
| Lower Lachlan Groundwater | $3,500 to $4,000 |
Seasonal Outlook
The Bureau of Meterology released an updated outlook on 23 February. In summary:
- For March to May, below median rainfall is likely (60 to 80 pc chance) for most of Australia away from the south-east coast.
- March to May maximum temperatures are likely to very likely (60 pc to greater than 80 pc chance) to be warmer than median for most of Australia except southern parts of Cape York Peninsula and central parts of the New South Wales coast.
- March to May minimum temperatures are likely to very likely (60 pc to greater than 80 pc chance) to be warmer than median for western, far south-east and far northern parts of Australia, while below median temperatures are moderately likely (around 60 pc chance) for areas of central Australia and the Kimberley.
- This forecast reflects the status and outlook for several climate drivers, including a declining La Niña.
Meet the author
Daisy is a Water Broker based at Elders Griffith. She commenced with Elders in May 2020 and has been working as a water broker since 2013.
She grew up on an irrigation property in the New South Wales Riverina and holds a Bachelor of Business from Charles Sturt University.
Daisy is a member of the Australian Water Brokers Association and specialises in Murrumbidgee, New South Wales Murray and Lachlan trading zones.