California Rainstorms Paying Off and Ukraine Grain Exports Rebound
**California’s January storms may be paying their first dividends for farmers.
The California Department of Water Resources announced the State Water Project may deliver 30% of requested supplies this year, up from an initial projection of 5% in December.
The final water allocation for 2022 was 5%.
A 30% allotment would allow the state to deliver 1.27 million acre-feet of water to 29 public water agencies.
**USDA's Economic Research Service reports Ukraine's corn and wheat exports have almost returned to seasonal-average levels since last summer, following the Black Sea Grain Initiative to reopen Black Sea shipping routes.
Russia's invasion of Ukraine led to elevated security risks and infrastructure damage, causing Ukraine's seaports to be almost completely cut off March through July.
The Black Sea Grain Initiative has increased opportunities for Ukrainian grain to leave the country and relieve some price pressures internationally.
**U.S. Trade Representative Katherine Tai Tuesday announced the second dispute settlement panel under the U.S.-Mexico-Canada Agreement regarding Canada’s dairy tariff-rate quota allocation measures.
The U.S. is challenging Canada’s revised dairy TRQ allocation measures that use a market-share approach for determining allocations.
Tai says although the U.S. won a previous USMCA dispute on Canada’s dairy TRQ policies, the Canadian government’s revised measures have not fixed the problem.