With record low allocations in the Victorian Goulburn and Murray systems there is a likelyhood that some owners of permanent plantings will commence selling allocation, placing their trees and vines in hibernation for this season. this could see an influx of water onto the market in the next month. Charting is suggesting a downward move for water - looking at moving down below $350.
With the South Australian Government support of growers not to kick in until next water year there will be no support for SA growers. They will need to make the 'hibernation' decision soon, with little likelyhood of an allocation lifting above the current 15%!
Perhaps another influence on water prices is the continued decline in Global dairy prices. After a 'boom' season, farmers may look to dry their cows off early if prices continues to decline. One saving grace is our $ when compared to USD - our exports are predominantly in USD - so we have an advantage in the conversion!
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