WATER PRICES SITTING BELOW $300

Water prices are maintaining levels around $290 per ML. There seems to be resistance in the market at this level and relatively strong support at $250. From the Greeneye Visual Trader charting on 1A Greater Goulburn sales I believe the price will settle at around $270 per ML.

There would appear to be significant volumes of water sitting in accounts according to a report in the Country News last week:

See link:

http://www.countrynews.com.au/story.asp?TakeNo=200902090563488

You can cut and past this link into your web browser to view or read the text without the Graph below:

Big volume still unused:

February 9 2009
Country News.


Goulburn and Murray system irrigators have accessed just more than a third of their available water so far this season.
Carry-over, current season allocations and trade into the region means there is more than 1 000 000 Ml of water available this year, but as at January 15 only 383 000 Ml had been used by customers on the Goulburn and Murray systems.

According to G-MW operations general manager Ian Moorhouse, with less than four months of the season left, the 672 000 Ml of water available is more than the 633 000 Ml delivered across the entire 2007/08 season.

"The large volume of water unused at this stage of the season is an important consideration for customers looking to trade current season allocation," Mr Moorhouse said.

"Prices around $300/Ml are far more reasonable than the peak of $1000 recorded last season, and make the water market an important mechanism for managing farm enterprises."

G-MW is also urging customers to continue to discuss their irrigation plans with their local G-MW team.

"If customers keep us informed of their intentions, we are better placed to anticipate and meet their deliveries as efficiently as possible," Mr Moorhouse said.

He said the delivery program this season had been incredibly dynamic and challenging as G-MW had focused on delivering water precisely where and when it was needed, as efficiently as possible.

Mr Moorhouse said G-MW was extremely pleased with the cooperation it had received from customers during the season.