Avian Flu Proving to Disrupt Domestic Egg Prices

Egg prices around the country may be on the rise, if you haven’t noticed already. A major Texas-based national grocer is putting up signs around their 350 supermarkets preparing customers to ration eggs because of the Avian Flu. Once thought as lethal in other parts of the world, Avian-flu is reportedly spreading around the country to a point of national crisis. According to the USDA, as of this month there have been 46M chicken and turkey’s affected, 80% of which are said to be egg-laying hens! Jeff Evans, Vice-President of the Managed Accounts Division for RMB Group in Chicago, shared his view regarding the fundamental assessment of the dairy futures market by stating, “I would expect this crisis to affect the food processors (and their customers) more than the consumers of actual ‘in-shell’ eggs itself.” Evans adds, “It’s the cost of processing egg-products that has made egg-based food products 2.5 times the price since this scare started, less than the USDA’s reported egg prices ‘just about doubling’ during this same period.” Dairy prices affect most consumers, especially those raising families. Egg prices are outside of the three-year price average for this time of year, unfortunately with no top yet in sight. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Regulations to Accommodate Hens to Affect the Egg Market

The egg market is in for a shell-shock next month when legislation from California catches-up to everybody from the producer to the consumer. Voters in the state approved a law which calls for egg-laying hens to have “more space” in their hen houses to ensure the birds are allowed to lay down, stand up, extend their wings, and dance around (I cannot make this up!). The price of USDA Grade AA Extra Large, and Grade AA Large, eggs may have been .02c slightly lower yesterday in New York’s cash market, but starting next month when the legislation comes into effect we should start seeing prices holding to higher over time. Farmers around the country that sell eggs to the Golden State will either have to comply with larger cages for their birds, or have less birds in existing cages (which implies culling their flock). “With farmers selling eggs to the country’s most populous state, it can only mean higher prices for the consumer,” said Laura Taylor, a senior commodities broker at RJO Futures in Chicago, sharing her fundamental analysis insight regarding the current egg market situation. Taylor added, “Who elects California legislators…chickens, or people? Who are California legislators elected to serve…people, or chickens?” On a national scale, wholesale egg prices average a record $2.77 per dozen which is up 34% from the year before. With this new law coming into effect, a Iowa university professor claims the amount Californians themselves will pay can be as much as 20% within three to six months into next year. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A...