Murrumbidgee temporary water prices climb, dam storage levels decline

A SENIOR Riverland water industry figure has advised fluctuations in NSW allocation prices could be reflective of upcoming trends set to impact Riverland irrigators.

Temporary water prices in the Murrumbidgee Valley have risen sharply over the past 12 months, with average prices climbing from around $30/ML in early 2024 to over $420 today, according to data from Waterfind Australia.

The price movement coincides with a sustained decline in dam storage levels across the Murrumbidgee system. Combined storage has fallen from 93 per cent capacity in January 2024, the highest level recorded in a decade, to below 50 per cent currently.

The Murrumbidgee Inter-Valley Transfer (IVT) account has also closed, restricting inter-valley water movements for the remainder of the season.

Berri-based Waterfind managing director Tom Rooney said the data reveals a consistent pattern over the past decade.

“What we’re seeing in the Murrumbidgee follows a well-established cycle,” Mr Rooney said.

“When storage levels are high, prices soften. As storages draw down, prices respond. The market is behaving exactly as you’d expect given current supply conditions.”

Of particular interest from the report generated from the Waterfind Premium Water Data system is the 2018 to 2020 time period, where water prices were last seen at pricing points currently being experienced in the market.

Mr Rooney said ”it is too early to tell if we are in a similar market cycle to that time period”.

“There have been some clients that have drawn similarities between the current market behaviour and the early 2018 period, which recorded sustained high pricing and low storage conditions,” Mr Rooney said.

“It’s an interesting point of reference, and we’ll be keeping an eye on how conditions unfold over the coming months.

“It would also be advisable for participants in the Murrumbidgee water market to study these and/or longer time periods and cycles to understand what may be likely in the months or years ahead, to make an informed position regarding their market access, rather than a knee-jerk reaction to current market mood that is sometimes brought about by hot weather”.