ALLOCATION ANNOUNCEMENTS

The regular bi-monthly announcements relating to allocations from both Victorian and NSW Authorities are tabulated below (source - Weekly Times 16/01/09):

Current allocations are as follows:

	Allocation as at 15/01/09	% increase	Additional ML available
Murrumbidgee general security	21%	9%**	178,819
NSW Murray general security	9%	5%	83,492
Vic Murray high reliability	35%	2%	23,283
Vic Goulburn high reliability	29%	1%	8,887
South Australia	18%	3%	15,376
Total additional allocation			309,857

As you can see from the table there is over 300,00 ML more water available. Indications from the market suggest the price will further weaken to $280 from around $300. Charting still suggests a lower price - moving to mid $200's.

Influencing this may be the fact that milk prices have been slashed by the major processors. Dairy farmers may well be starting to evaluate the advantages of purchasing water to finish the milking season. they may utilise their increased allocations and then commence to dry off lower producing cows.

Grape producers will be closely evaluating their budgets in light of low grape price forecasts for wine production this year.