The allocation market has remained steady through September despite the outlooks for no further determinations in either the Murrumbidgee or NSW Murray.
With the market split into 4 separate regions, there are significant price differences. Murray below choke has been trading at $780+/ML. Murray above choke has been around $600/ML and with the Barmah Choke opening regularly, small volumes are able to move downstream. Prices in the Murrumbidgee have moved from $550 to 600/ML in the last few weeks, with some speculating the IVT will open and present a $200/ML opportunity. The Goulburn has been trading around $570/ML, driven by tagged accounts in the Murray, although that opportunity will cease come December.
The last month has seen the Almond Board of Australia and other horticultural groups write to the Federal minister regarding the actions of some brokers in the market. The Australian Competition and Consumer Commission have begun their review into the water market and the Victorian Government has just released an options paper to improve water market transparency. Let’s hope the outcomes result in a more transparent and fungible water market.