COMPARISON OF ALLOCATIONS AND WATER IN STORAGE

Analysis of water stored versus water allocated for the Lower Murray Darling Basin in the past 2 years provides interesting comparison. Across the Lower Basin, there is 2.5% less water in storage this year, compared with last year - 3,875.1 GL in 2008/09 and 3,777.9 GL currently. This is only approximately 100,000 ML less. However we have current allocations of 636,710 ML by comparison to 514,840 ML at this stage last year, the net difference is 220,000 ML - not insignificant in the scheme of things.

With a new allocation announcement due on October 1st, perhaps there is little room to move. Without an increase in allocation, the allocation market will potentially see a firming of prices or at least strong support at the price level we now see.

The Charting Analysis will be published over the weekend.