52-Week Range in Share Price: $36.65 to $47.00. 50-day moving average $43.22

Market Close Friday 3rd January $42.50. Post release; Monday 6 th January,13H00 $38.58

Forward P/E 24.7 Beta 0.4. PEG Ratio 70.0

In reviewing the CALM quarterly report the following calculated values* represent key data for the most recent Quarter. (Q2 Fiscal 2019 and difference in parentheses):-

· Dozen shell eggs sold: 261,026,000 (262,263,000; -0.5%)

· Average selling price of all shell eggs: $1.16 per dozen; ($1.33 per dozen; -12.8%).

· Average selling price of specialty eggs calculated from data released: $1.89 cents per dozen; ($1.98 per dozen; -4.5%).

· Average selling price of generic eggs calculated from data released: $0.96 cents per dozen; ($0.85 cents per dozen; -9.4%).

· Differential between generic and specialty eggs: $0.93 cents per dozen; ($1.13 per dozen; -17.9%)

· Specialty eggs as a proportion of volume sold: 22.3%; (23.5%; -5.1%)

· Specialty eggs as a proportion of sales value: 36.0%; (35.0%; +2.9%)

· Proportion of eggs sold actually produced by Cal-Maine flocks: 88.7%; (85.0%; +4.4%).

· Feed cost per dozen 42 cents (42 cents)

*Assumes that 98 percent of sales value derived from shell eggs.

In reviewing Q2 results, Dolph Baker, chairman and CEO of Cal-Maine Foods, Inc., stated, "We continued to experience challenging market conditions for the second quarter of fiscal 2020. While our sales volumes remained relatively flat in the second quarter compared to last year, our financial results reflect lower average selling prices compared with the same period of fiscal 2019. The Southeast large market average price for conventional eggs dropped 12.7 percent for the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019. At the same time, our average sales price was down 11.5 percent, due to an unfavorable balance of egg supply and demand. Hen numbers, as reported by the USDA Chickens and Eggs report as of December 23, 2019, are 340.5 million, which is 4.6 more million hens than a year ago. The increase in the number of hens continues to contribute to the oversupply of eggs.

He added, "during the second quarter of fiscal 2020, we lost a portion of our sales of non-specialty eggs to a major customer in the Southeast region, representing 4.6 percent of total shell egg dozens and 6.1 percent of non-specialty egg dozens for fiscal 2019. This did not materially affect sales during the second quarter of fiscal 2020. However, we expect our new capacity additions and our previously disclosed plans to decommission some older, less efficient facilities will help optimize our operations, improve our sales mix, and better align our production and sales within the region".

"Our specialty egg business remains a key component of our growth strategy in fiscal 2020. For the second quarter, specialty eggs, excluding co-pack sales, were $109.4 million accounting for 36.0 percent of our sales revenue, compared with $120.8 million, or 35.0 percent of sales revenue, in the second quarter of fiscal 2019. Average pricing for specialty eggs was down by 4.1 percent to $1.88 per dozen in the second quarter compared to the prior-year second quarter. Specialty dozens sold were also down 5.7 percent, as sales of specialty dozens were negatively affected by low conventional egg prices.

"We continue our efforts to position Cal-Maine Foods as an industry leader in meeting future customer requirements for cage-free eggs. We are preparing for the additional demand created by legislation in California, Washington and Oregon requiring cage-free eggs, as well as three other states with similar laws defining minimum space requirements. We have invested over $314 million to expand our cage-free production and continue to make progress with our expansion plans in Florida, Texas and Utah, which will provide significant additional processing, pullet and cage-free capacity upon completion.

Baker concluded "in spite of challenging conditions, we will continue to manage our business for the long term, regardless of the volatility in market prices and other external factors outside our control. We are well positioned to execute our growth strategy, and we are committed to making the right investments to support our operations and continue to serve our valued customers,"

During the 2nd Quarter of FY 2020 CALM purchased Mahard Egg Farm. The SEC Q10 Cash Flow statement records $44.4 million under the category "Acquisition of Businesses". The Company took a $48.9 million charge for "Impairment of Assets" and expended $68.7 million on "Purchases of Property and Equipment"