January 14, 2022 MPC Friday Report

Updated: Feb 1

 

By the Numbers: Current Water Conditions

By Geoff Vanden Heuvel, Director of Regulatory and Economic Affairs


December was wet. So far, January is dry. The charts below show where we are.


The Tulare Lake graph is relevant for the Southern Central Valley local supply. The San Joaquin River graph shows the Friant and North Valley local supplies. The Northern Sierra graph shows the current condition of the State Water Project and Central Valley Project (CVP), which take their water out of the Delta.


The December storms seemed to have put less water into the Lake Shasta watershed, which is a concern. Lake Shasta is very low, and in addition to providing water supply, it also has to supply cold water for salmon. Until Lake Shasta reaches more than 3 million acre-feet in storage, there is likely not enough cold water at the bottom to meet the temperature needs of the salmon and also meet the water supply demands of the CVP contractors.


Right now, the State Water Project is still at a zero allocation for 2022. The federal CVP water year runs from March 1 to February 28. So, it is still a few weeks away from an initial announcement of an allocation for the 2022 irrigation season.






 

Milk, Dairy and Grain Market Commentary

By Sarina Sharp, Daily Dairy Report


Buckle up and keep your hands inside the tram. The dairy markets are on a roller coaster ride, swinging wildly from heart-stopping highs to stomach-churning lows and back again. But, unlike thrill rides, which end up back where they began, the dairy markets are breaking new ground. Class III and Class IV milk futures forged new life-of-contract highs across the board this week.


February Class III advanced 65ȼ and closed at $22.08 per cwt. March was even stronger, up $1.19 to $22.43. Further down the board, most contracts gained around 80ȼ. Class III futures stand at $21 or higher through September. The Class IV markets were stronger yet. The February contract leapt $1.36 to an astounding $23.49, and Class IV milk is $22 or better through August, with September at $21.99.


Read the entire MPC Friday Report below

2022-01-14 MPC Newsletter
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