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The 'Forward Market' allows clients to sell/buy allocation water at a later date in the current water season or in future water season.
Forward Markets provide flexibility for security in future water seasons, helping you plan ahead with your water requirements to:
The live Forward Water Market can be accessed through your online account, or by contacting one our team to create an account. You can log in to your account to access the market, 24 hours a day, seven days a week.
Each water trading license will need to be approved for use by our team.
Almost anyone can use the Forward Market, however your account needs to be approved for Forward Market transactions before you can use the facility.
We also need to ensure we have advised of additional requirements when acting in the Forward Market. We will work with you to review your trading history before approving your account.
When purchasing water on the Forward Market, the following payment terms apply:
Deposit and conveyancing fees are due within 7 days of a signed contract. Any outstanding balance, government and water authority fees will be due no less than 14 days prior to the delivery date.
Forward Buy/Sell Orders can be generated from the CRM by selecting the ‘Forward’ option. Due to the additional requirements in a
Forward Market contract, SMS/email confirmation cannot be used for these transactions. The SMS link option can be used.
Sales recognition is payable at settlement of the forward trade. Where a client has bought water for delivery in a future water season, transfer forms will not be sent until the 1st of July of that new water season. ‘Delivery date’ is the date that the transfer is lodged with the water authorities, not when the Purchaser will receive the water. Regular water authority approval times apply.
When a Vendor sells water on the Forward Market, they are guaranteeing that they will have the water available in their account on the delivery date (date the transfer is lodged). If they do not have the water available on the delivery date, they must purchase additional water to fulfil the contract. If the market price increases before the delivery date, and they have already agreed to sell at a lower price as per the forward contract, then they are locked in to sell at this price.
Due to this, and applying best practice, we keep in regular contact with our clients, ensuring they don’t forget or attempt to renege on the contract.
Buyer’s agree to take delivery of the allocation based on the appropriate region that the vendor is selling from.
An example of where this could cause issues is where the Vendor and Buyer are in two regions where trading restrictions can occur (i.e. Vic to NSW closures, Murrumbidgee in/out closures, Goulburn out trade closures, Barmah Choke restrictions). If the Vendor and Buyer are in two regions where trading restrictions are in place, this can cause issues when trying to transfer the water.
Therefore, it is usually best to trade within regions that are not at risk of experiencing trading restrictions.
If the market price decreases before the delivery date, and client have already agreed to purchase at a higher price as per the forward contract, then they are locked in to purchase at this price.
Due to this, and applying best practice, we keep in regular contact with our clients, ensuring they don’t forget or attempt to renege on the contract..
Contact one of our experienced consultants and learn how our online Water Market 24/7 can benefit your business today.
