Higher rainfall and full storages have caused temporary prices across the Murray-Darling Basin to trade at low prices not seen since July 2014.
Mr. Rooney, CEO and Group Founder of Waterfind states that “the market is working as it is supposed to be with increasing annual supply driving lower annual prices" and that "many farmers will welcome the lower prices as it represents one of the rare major farming inputs that have decreased over the last 12 months in our inflationary cycle – maybe the RBA should be using water in their CPI considerations rather than Fuel!”
And there is more rain to come, with the latest Climate Driver Update by the Bureau of Meteorology states a negative Indian Ocean Dipole (IOD) is underway, reaching its lowest point since 2016. Additionally, the possibility of a La Niña event forming later in 2022 is twice as strong than the normal likelihood.
Dam storages across the entire Murray-Darling Basin are currently at 93% capacity, with the Northern Basin 103% full and the Southern Basin 90% full. Record levels of Carryover in many regions (unused water transferred from last season to this season) have also increased water availability and water security which many irrigators will be wanting to take full advantage of before the next dry cycle commences.