News

Rain signals water recovery

By Dairy News

WIDESPREAD RAINFALL in March has been a welcome relief for everyone, H2OX business development manager, Craig Feuerherdt has observed.

“The Darling River is reinvigorated, which is good news for NSW entitlement holders and everyone who relies on the water market.

“The water is making its way to the Murray River, and more than 200 Gl is expected to enter the Menindee Lakes,” Mr Feuerherdt said.

He noted temporary water prices in the Murray hit a high of $1000/Ml before settling back to around $800/Ml.

As of early March, prices had softened back to $500/Ml, and the volume-weighted price of temporary water in the Victorian Murray was $700/Ml at February’s end.

The Northern Victoria Resource Manager (nvrm.net.au) released outlooks for the 2020–21 season earlier this year—average inflows should result in Victorian High Reliability entitlements receiving 100 per cent. However, if the dry inflows continue, determinations will be around 45 per cent.

At the turn of the seasons, when crucial decisions are being made about water, Mr Feuerherdt said irrigators should take into account the following questions:

What is my gross margin for water?

What water assets do I own?

How much water do I require and when?

What are the determination outlooks for next season?

How will my water availability be impacted under various inflow scenarios?

What options are there to ensure my water is secure?

Mr Feuerherdt said the water market is constantly evolving — that’s why guidance from experienced water-market intermediaries is essential to formulating a water plan that ensures you’re prepared for whatever may come.

H20X is an independent water exchange based in Bendigo.