• For results of our Annual Auction see the Water Auction page

  • Lower Murrumbidgee Zone 1, 2 & 3 Groundwater in demand post-Auction
        

  • Record prices for Murrumbidgee General & High Security at last Friday's Water Auction

  • Murrumbidgee Carryover Space WANTED
     

  • Murrumbidgee River trading closes Thursday May 31st

Area News story - Water Sold For Over $5K/Megalitre at Riverina Field Days Shows How Much Water Is Really Worth

PICTURED: Water Trades Officer and Griffith representative of Wilks Water, Alexandria Koenig. PHOTO: Sarah Bentvelzen

 PICTURED: Water Trades Officer and Griffith representative of Wilks Water, Alexandria Koenig. PHOTO: Sarah Bentvelzen

At the Griffith Riverina Field Days there was a lot of excitement to be had, but it seemed the biggest event of the weekend was the water auction, which saw record sales smashed.

The Area News spoke to Water Trades Officer and Griffith representative of Wilks Water, Alexandria Koenig who commented about the momentous occasion where over $7 million in water was sold, and gave us a quick introduction to the world of water buying and selling.

“The aim of the auction was to find out what the water is really worth,” Ms Koenig said.

“Categories included permanent general and high security surface water, permanent groundwater, supplementary water, carryover, temporary surface and groundwater and forward water.”

Over 80 registered bidders – farmers and irrigators – from all over Australia, and an estimated crowd of over 300 – mostly from the Griffith region – came to the Riverina Field Days to buy water.

Phone bidders from Brisbane, Adelaide, Victoria, and even overseas also looked to get their hands on water which is currently in high demand, particularly due to the recent dry spells.

“With the dry season, people just want that security,” Ms Koenig said.

On the day, NSW permanent high security surface water was in highest demand, however zone 3 permanent groundwater also sold well, for $2475 per megalitre.

“High security water smashed records. Parcels sold for $5,000 or more per megalitre,” Ms Koenig said.

“High security water gives you that peace of mind – to help you plan ahead.”

Parcels varied in size, with some at two megalitres – for high security surface water – and another at 100 megalitres.

“And of course, there is only a certain amount of parcels – not everyone can take home water on the day. Demand is still high for this permanent high security water,” Ms Koenig said.

“There are still farmers willing to pay that money which goes to show you the demand for it, and goes to show how much the water is worth.”

“The aim of the auction each year is to find out what water is really worth, and it’s an open and transparent way of doing so with plenty of opportunity for both buyers and sellers. Overall it was a great result for those who entrusted their water with Wilks Water,” Ms Koenig said.

The Area News also spoke with Chief Executive Officer of the Riverina Wine Grapes Marketing Board, Brian Simpson, who commented on the Riverina Field Days success:

“Water is the lifeblood of this area – there are big developments going on in the region,” Cr Simpson said.

But, Cr Simpson believes it is the nut growers of the region who will need their water to be secured.

“We’re aware of an increase in plantings in the region of nut crops – they are a big user of water, and there is a potential for this area to really expand in nut production,” Cr Simpson said.

“Those companies would be looking to secure water going forward, as opposed to buying it on the temporary market.”

On the ‘smashed records’, Cr Simpson noted:

“It’s a positive thing. It means that the growers’ assets and values in their properties will improve as a result of a strong market.”

“It’s great – it’s great for the region.”




HEATHER HATCH - Call 0447 473 755

Wilks Water would like to welcome

Heather Hatch

Griffith's leading water broker.

Heather joins the team as our local lady on the ground for all Griffith water needs and brings over 12 years experience in the water industry. 

You can contact Heather on 0447 473 755, email heather@wilkswater.com.au or meet with her in the Ray White Griffith office, located at 139 Yambil Street, Griffith, NSW.


No Commission, No Reserve Price!

Temporary Surface Water – 2017 Auction Format

No Commission, No Reserve Price!

The 2016/17 water year has been a complete contrast from last season. Who could have predicted such a wet spring? The impact of this has seen temporary water prices on a steady decline throughout the year. The big wet has also resulted in a huge volume of unused allocation still in the system, which at this time of year means there is going to be an oversupply of sellers looking for a return or risk forfeiture come the end of the season.

Given the conditions, Wilks Water has altered their fee structure for the 2017 Water Auction, seeking to find a win-win structure for both sellers and buyers.

NO RESERVE PRICE for Temporary Surface Water listed at the Water Auction.

The ‘no reserve’ format will attract any buyers keen to secure water before end of season.

NO VENDORS COMMISSION* for Temporary Surface Water listed at the Water Auction.

It’s getting late in the season. Any water that cannot be carried over will be lost. This format is designed to allow for sellers to get something for their water rather than forfeit it at the end of the season. With no commission to pay something is better than nothing.

To further promote fairness for sellers of temporary surface water, a ‘volume-weighted average price’ return will be implemented. The gross proceeds of temporary surface water sold will be divided by the number of megalitres offered for sale at auction (whether sold or not). Each water source will be calculated separately.

This will also reduce the inequity between the order of lots for sale where there is a price differential between early lots and late lots sold under the hammer.

Under this system, all sellers of temporary surface water listed will receive a return. The volume-weighted average or pool price will be shared amongst all sellers*.

A payment will be returned to all sellers after the completion of the auction. If further listed water is sold post-auction, a new volume-weighted average price will be calculated and a second payment will be made.

For more information on the Wilks Water Annual Water Auction, download a Vendor Listing form or a Bidder Registration, click here to head to our Auction page

*Temporary surface water buyers will be charged an auction fee of $1.50/ML + GST
*Temporary Surface Water will be transferred to a pool account prior to the auction


ANNUAL WATER AUCTION

PRELIMINARY NOTICE

ANNUAL WATER AUCTION

12th May 2017 @ 2:30pm

Davidge Pavilion - Riverina Field Days, Griffith

Entries invited for

Temporary and Permanent Surface and Groundwater

Very strong buyer enquiry in the Murrumbidgee Valley for:
  • Permanent High and General Security Water
  • Permanent Supplementary incl. MIA and CICL
  • Lower Murrumbidgee Groundwater
  • Carryover Capacity
  • Forward Water
"Currently there is very strong demand for Permanent Water, with low supply available. I believe that at the Annual Water Auction, we could see sellers achieve record prices" 
- Tom Wilks, 13/4/17

Market Snapshot
Temporary Offers to Buy Offers to Sell Last Sale
Murrumbidgee $5/ML $10/ML
$8/ML
NSW Murray $30/ML
$39/ML
$32/ML
Permanent Offers to Buy Offers to Sell Last Sale
General Security $1500/ML
$1550/ML
$1500/ML
High Security $3480/ML
$3600/ML $3480/ML

For further information, or to list you water call us on
0269 318 522 or 0428 694 608

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Our contact details are:
Wilks Water
P.O. Box 5633, Wagga Wagga, NSW 2650
Phone: 02 6931 8522 | Mobile: 0428 694 608 | Fax: 02 6931 9897
Email: water@wilkswater.com.au | Website: www.wilkswater.com.au


IVT UPDATE

IVT UPDATE

As at 12/01/17 the IVT balance was still 100,000ML meaning intervalley trade from the Murrumbidgee to the Murray is still closed. (Click here to view IVT balance online)

The MDBA in their River Murray System Annual Operating Plan End October 2016 Update published 18th November 2016, on page 8, spoke of current planning calling on 100GL from the Murrumbidgee between January and May 2017, which would cause the IVT balance to be lowered, possibly to zero and open trade from the Murrumbidgee to the Murray(Click here to view the River Murray system annual operating plan End October 2016 update).

TEMPORARY WATER VALUES – CURRENT SALES

Murrumbidgee: $35 to $39/ML.

NSW Murray: $70 to $77/ML.

Victorian Murray: $70 to $78/ML.

Temporary prices in the Murrumbidgee are back to levels seen in the spring when the rain appeared unlikely to stop long enough for rice and cotton planting to occur. With a $30/ML price difference when intervalley trade opens Murrumbidgee values will rise and Murray values fall to find a middle ground assuming trade stays open for any length of time.

I feel trade will be opened and shut before most people hear about it.

The MDBA report also mentioned drawing on the Menindee Lakes storages to run the Darling River and the Murray River below Wentworth (Page 7).

This has been recently announced. (Click here to view the MDBA Media Release).

WHEN WILL IVT OPEN?

The MDBA report has outlined their intentions regarding IVT opening. We will only know the exact date after it has happened. Further information may be made available in the MDBA weekly update published on Fridays (To subscribe to weekly update, click here).

All the above information points to intervalley trade opening at some stage this season, however there are no guarantees.

If trade does open, there will be a stampede to take advantage of higher temporary prices on the Murray and intervalley trade will close very quickly.

If you wish to participate in intervalley trade, please contact me to make arrangements now so we can lodge a trade form immediately when trade opens. 

NOTE TO TEMPORARY BUYERS

There are currently sellers in the Murrumbidgee Valley at $35 - $40 /ML. The lowest prices seen for quite a while. Prices will only stay low while intervalley trade is closed. It may be worth considering purchasing water now for pre-watering or to fill storages later on. 

CARRYOVER SPACE

Buyers are currently offering $60 /ML for carryover capacity in the Murrumbidgee Valley - including MIA and CICL.

PERMANENT WATER - MURRUMBIDGEE VALLEY

High Security

Buyers @ $3500 /ML - few sellers

General Security

Buyers @ $1400 /ML
Sellers @ $1500 /ML


To discuss these or any other water matter please do not hesitate to contact me at any time.

Tom Wilks - 0428 694 608 or business hours - 0269 318 522.    



ALLOCATION ANNOUNCEMENT - 1ST NOVEMBER 2016

01-Nov-2016 Allocation Announcement

NSW Murray

NSW Murray General Security

increases to 72% of entitlement

NSW Murray High Security

remains at 97% of entitlement

Murrumbidgee

Murrumbidgee General Security

increases to 76% of entitlement

Murrumbidgee High Security

remains at 95% of entitlement
Murrumbidgee General Security allocation increases by 5% to 76% of entitlement. Continuing rainfall has seen storages remain effectively full and irrigation demand is minimal. Supplementary access has been continuous since the start of the water year; however regulated water delivery conditions will return as flood waters continue to recede.

NSW Murray General Security allocation has increased by 9% to 72% of entitlement. The increase is underpinned by improvement in storage at Menindee Lakes and Dartmouth Dam. 

The next allocation announcement will be 15th November 2016.
See past and present Allocation Announcements on the NSW Office of Water website by clicking here.

ALLOCATION ANNOUNCEMENT - 17TH OCTOBER

17-Oct-2016 Allocation Announcement

NSW Murray

NSW Murray General Security

increases to 63% of entitlement

NSW Murray High Security

remains at 97% of entitlement

Murrumbidgee

Murrumbidgee General Security

increases to 71% of entitlement

Murrumbidgee High Security

remains at 95% of entitlement

Murrumbidgee General Security allocation has increased by 10% to 71% of entitlement. Now that general security allocation has increased beyond 70%, carryover in accounts will start to boost allocations because individual account limits, 100% entitlement in the Murrumbidgee, are being reached. In other words, those with maximum carryover (30%) cannot benefit from further allocation improvement and their forfeited water is allocated to others.

NSW Murray General Security allocation has increased by 10% to 63% of entitlement. Above average rainfall and wet catchment conditions continue to provide steady system inflows and storage improvements. Now that general security allocation has increased beyond 60%, carryover in accounts will start to boost allocations because individual account limits, 110% entitlement in the NSW Murray, are being reached. In other words, those with maximum carryover (50%) cannot benefit from further allocation improvement. This forfeiture of water from full accounts means that those with little or no carryover benefit the most from further resource improvements.

The next allocation announcement will be 1st November 2016.

See past and present Allocation Announcements on the NSW Office of Water website by clicking here.

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Our contact details are:
P.O. Box 5633, Wagga Wagga, NSW 2650
Phone: 02 6931 8522 | Mobile: 0428 694 608 | Fax: 02 6931 9897 | Email: trades@wilkswater.com.au

Copyright © 2016 - Water Exchange Australia Pty Ltd trading as Wilks Water, All rights reserved.


ALLOCATION ANNOUNCEMENT - 4TH OCTOBER 2016

04-Oct-2016 Allocation Announcement

NSW Murray

NSW Murray General Security

increases to 53% of entitlement

NSW Murray High Security

remains at 97% of entitlement

Murrumbidgee

Murrumbidgee General Security

remains at 61% of entitlement

Murrumbidgee High Security

remains at 95% of entitlement
Murrumbidgee General Security allocation remains unchanged at 61% of entitlement. Average general security carryover is 19% of entitlement, meaning that overall general security water availability remains at 80%. The resource improvement in the past fortnight was required to be assigned to the Environmental Water Allowance (EWA3), in accordance with the water sharing plan, since general security allocation plus carryover has reached 80%. Future resource improvements can now accrue to general security entitlement holders. 

NSW Murray General Security allocation has increased by 11% to 53% of entitlement. Above average rainfall and wet catchment conditions continue to provide steady system inflows and storage improvements. Average general security carryover in NSW Murray water user accounts is 27% of entitlement, meaning that the general security water availability overall is 80%. 

The next allocation announcement will be 17th October 2016.
See past and present Allocation Announcements on the NSW Office of Water website byclicking here.

ALLOCATION ANNOUNCEMENT - 15TH SEPT 2016

15-Sep-2016 Allocation Announcement

NSW Murray

NSW Murray General Security

increase to 30% of entitlement

NSW Murray High Security

remains at 97% of entitlement

Murrumbidgee

Murrumbidgee General Security

increase to 54% of entitlement

Murrumbidgee High Security

remains at 95% of entitlement

Murrumbidgee General Security allocation has increased 4% to 54%. Intermittent rainfall combined with already wet catchments has led to significant runoff and inflows into the Murrumbidgee storages. Storage levels continue to rise with downstream tributaries below Wagga contributing significant inflows to the main river. Further rainfall is forecast.

NSW Murray General Security has increased by 5% to 30%. Rainfall since June has improved soil moisture and provided steady system inflows and storage improvements.

The next allocation announcement will be 4th October 2016.

See past and present Allocation Announcements on the NSW Office of Water website by clicking here.



ALLOCATION ANNOUNCEMENT 1ST SEPTEMBER 2016

ALLOCATION ANNOUNCEMENT

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Murrumbidgee General Security allocation has increased 4% to 54%. Intermittent rainfall combined with already wet catchments has led to significant runoff and inflows into the Murrumbidgee storages. Storage levels continue to rise with downstream tributaries below Wagga contributing significant inflows to the main river. Further rainfall is forecast.

 

NSW Murray General Security has increased by 5% to 30%. Rainfall since June has improved soil moisture and provided steady system inflows and storage improvements.

 

The next allocation announcement will be 15th September 2016. 

 

Murrumbidgee General Security water allocation increases to 54% of entitlement.

 

Murrumbidgee High Security water remains at 95% of entitlement. 

 

NSW Murray General Security water allocation increases to 30% of entitlement.

 

NSW Murray High Security water remains at 97% of entitlement.

 

See past and present Media Releases on the NSW Office of Water website by clicking here