Just when you think everything is static, things change very quickly. This applies to global issues as we are experiencing with COVID-19 through to the southern MDB water market.
Allocation prices in all systems have halved since Christmas and they continue to soften. The market sentiment has changed due to several factors including recent rainfall, water flowing down the Darling and positive outlooks from the BOM for above median rainfall for the next few months. There are opportunities, but some caution is needed until we see real improvements to water in storage.
After several years of continual growth, entitlement prices are softening. The challenges of the Barmah Choke and Goulburn IVT have seen demand reduce for Goulburn entitlements those above the Choke. The current review of the Goulburn IVT is likely to see a more challenging trading environment going forward, adding further downward pressure on entitlement value.
It will be a slightly different Easter this year for many of us. No travel. No physical socialising. A good time to reflect on just how complex and inter-related the world has become. More importantly a time to consider what the most important things are for a quality of life (toilet paper excluded).