Water

Unused Water: April 2020

7 April 2020

The rainfall event at the start of March saw prices in the water market start to drop. Further rainfall at the start of April was widespread and put further downward pressure on allocation prices.

The drop in prices seems illogical given that the volume of water in Murray storages are well down on the same time last year and only slightly higher in the Murrumbidgee storages.

The interesting factor in the current market is the current balance of unused water being held in irrigators accounts as shown in the following tables for Victoria and NSW.

Victoria
Season
Opening
Carryover
Current
Unused
Est Usage Remaining Est.
Carryover
2019-2020 372,660 764,0061 100,000 664,006
2018-2019 471,502
2017-2018 877,224

NSW
Season
Opening
Carryover
Current
Unused
Est Usage
Remaining
Est
Carryover
2019-2020 381,679 578,0542 100,000 478,054
2018-2019 559,078    
2017-2018 1,543,095    

1 Balance of unused water as at 31 March 2020. Data extracted from https://waterregister.vic.gov.au/
2 Balance of unused water as at 31 March 2020. Data extracted from https://waterregister.waternsw.com.au/water-register-frame

Irrigators have started their Autumn watering and we anticipate approximately 100GL to be consumed in both Victoria and NSW. Regardless of this usage, there will be a significant increase in the volume of carryover being taken into next season. This will have an impact on allocation markets next season, regardless of whether it rains or not.

For more information download the full report.


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