WEEKLY ECONOMY, COMMODITY & ENERGY REPORT: November 29^th 2024.

OVERVIEW

The prices for corn and soybeans diverged over the past week. Soybeans were up 0.8 percent and corn down 2.8 percent. Corn and soybean prices were influenced by domestic demand and uncertain projections of yield from Brazil and Argentine. There was minimal response to the November WASDE Report incorporating actual harvest values. Farmers are selling the remainder of the old crop and the new crop to avoid further declines in price and to make room for the completed 2024 harvest. There was some technical selling arising from geopolitical concerns and in response to revised projections for harvests in South America. Contributory pricing factors included ongoing disruption in shipping in the Red Sea and Panama Canal, carryover from the 2023 U.S. crop, export orders and the predicted ending stocks of corn and soybeans from the 2024 crop. The 2024 harvest, was in advance of the five-year average. Both crops apparently have superior condition as compared to 2023. The transition from a neutral phase to a La Nina event is underway and will intensify during the remainder of the fourth quarter but has had no effect on the 2024 harvest. The November WASDE, incorporated actual yields and harvest volumes, with USDA updates for anticipated exports, domestic use and carryover for the 2024 crop.

At close on November 27^th the CME corn quotation for December delivery was down 2.8 percent to 415 cents per bushel. Corn price was influenced by acreage planted, ethanol demand and the ending stock from the 2023 crop. Farm selling continues, given the need to make room for the new crop. USDA estimated that 44 percent of old corn stock was held on farms at the beginning of September. Export orders for the current market year have increased in response to lower prices. Volumes and price are indirectly influenced by wheat availability as influenced by weather affecting the Black Sea wheat and corn crops. Orders by China resumed at the end of the 2022-2023 market-year and continued through November despite an increase in the Dollar Index, adding to increased ocean freight. Total exports for the new 2024-2025 market year are 35.7 percent above the previous weeks of the 2023-2024 market year.

Soybeans were priced at 989 cents per bushel for January 2025 delivery, still under the 1,000-cent psychological threshold. Price was up 0.8 percent compared to 981 cents per bushel last week for January delivery. Lower prices were attributed to the projection of ending stock, farm selling and taking into account recent export orders and projections of availability from the 2024 U.S., Brazil and Argentine harvests. Total exports for the 2024-2025 market year are 13.5 percent higher than for the corresponding weeks of market year 2023-2024.

Soybean meal was priced at $291 per ton for December delivery, up $2 per ton from last week. Price is influenced by demand coupled with reestablished crush volume since September restoring the processing trend of the first half of 2024. Price will fluctuate to reflect the CME price for soybeans and the depressed demand for biodiesel due to oversupply and the consequential adverse financial situation in this sector. The market previously responded to the increased 2023 crop and higher stocks together with projections for 2024 in the updated November WASDE Report.

On November 27^th at 20H00 EDT the price for WTI was $68.50, down $0.37, (-0.5 percent) from last week. Current price is not materially affected by uncertainties and tensions in the Middle East but reassured that retaliatory by Israel did not include Iranian oil installations. Over the longer term price reflects moderate world demand for crude as economies and especially that of China have retracted, requiring central bank stimulation in late August. It is evident that U.S. production is a moderating influence on World price, attaining a record average of 13.4 million barrels per day over the third quarter with ample reserves. There was only small fluctuation in the price of WTI through November 27^th with the range during the week extending from a low of $65.80 on November 27^th up to $71.18 on November 22^nd.

Ample U.S. crude production is constraining domestic and international prices. The recent decline in energy costs during the past three months contributed to deflation influencing the FOMC in their decision to lower the benchmark interest rate 0.5 percent at the September and 0.25 percent at their November meetings.

Economic data released during the past quarter (Q2 GDP; PCE, Confidence, Productivity, Employment) confirm a growing economy but with a downward trajectory in inflation. Third quarter GDP was confirmed to be 2.8 percent consistent with preliminary projections. Federal Reserve Chair Jerome Powell and Reserve Bank Governors previously indicated one or two additional reductions in the 10-year rate during 2024 with a cut anticipated in December. The August and September Non-farm Payrolls and labor data clearly indicated the danger of prolonging the high benchmark interest rate that was negatively impacting the U.S. economy. The Federal Reserve is now addressing employment as a priority over containing inflation.

Macroeconomic U.S. factors:-

• Most economists in academia and the private sector accept that the U.S. economy has achieved a “soft landing”. This is despite the release of the Q3 2024 increase in GDP of 2.8 percent, down from 3.0 percent in Q2 but considering trends in recent economic parameters including the ECI, CPI and PPI. Annual inflation as measured by the headline PCE declined from 8.9 percent in June 2022 to 2.1 percent in September 2024. This is in part a response to a series of 11 FOMC rate raises followed by eight pauses that curbed inflation and cooled the labor market but without precipitating evident unemployment. There is obvious stability in the bank sectors in both the U.S. and Europe. Lower energy prices are contributing to deflation.
• The Federal Reserve lowered the benchmark interest rate by 0.5 percent at the FOMC meeting on September 18^th, the first of a series of actions after eighth sequential pauses. The Federal Reserve commentary indicated that progress has been made in reducing the rate of inflation. The Fed lowered the rate by a further 25 basis points on November 7^th as anticipated with a subsequent reduction of 25 basis points expected at the December meeting but with a possible pause into early 2025. Chairman Powell in Congressional testimony, and at the post-meeting press conference and also documented in FOMC minutes indicated that decisions would be based on demonstrated progress in reducing inflation as confirmed by a basket of key economic data, towards an annual 2.0 percent target by mid-2025. This now appears feasible.
• The November 27^th release by the Bureau of Economic Affairs documented Q3 2024 GDP at 2.8 percent confirming preliminary figures. The Q3 GDP compares to 3.0 percent for Q2 and 2.9 percent for entire 2023. The GDP in Q3 was supported by higher consumer spending, especially on non-durable goods and increased exports.
• The November 13^th release of the Consumer Price Index (CPI) for October showed a 0.2 percent rise over September and an annual increase of 2.6 percent consistent with prior estimates. The annual value is compared to 2.4 percent for September. Core CPI (excluding food and fuel) was up 0.3 percent in October with an annual increase of 3.3 percent, unchanged from September. Food at home was up 0.1 percent for October and 1.1 percent over 12 months. Food away from home was up 0.2 percent for October and up 3.8 percent compared to October 2023. Shelter was up 0.4 percent during October accounting for half of the inflation during the month. Notwithstanding the increase in CPI during October a reduction in benchmark interest rate is anticipated at the December FOMC Meeting.
• On November 7^th the Bureau of Economic Analysis released the Personal Consumption and Expenditure Price Index for October. The core PCE (excluding food and energy) was up 0.3 percent from the previous month, and attained 2.8 percent year-over-year. The Headline PCE was up 0.2 percent from September and 2.3 percent from October 2023, a 42-month low and consistent with projections. Food was up 0.1 percent from September. The headline PCE is closely followed by the Federal Reserve and confirms that inflation is progressively moderating but still above an annual target of 2.0 percent.
• The October Producer Price Index for Final Demand (PPI) released on November 14^th rose 0.2 percent from September consistent with expectations. This was attributed in part to a 0.3 percent increase in services and a 0.3 percent increase in food. The PPI was up 2.4 percent over the past 12-months ending in October compared with 2.8 percent for the 12-month period through September. This is compared to a 6.4 percent increase in 2022. The core PPI value excluding volatile fuel and food, was up 0.3 percent from September and 3.5 percent over the previous 12 months.
• A Federal Reserve release on November 15^th confirmed that industrial production was lower by 0.3 percent in October similar to the decrease of 0.3 percent in September. Capacity utilization was lower at 77.1 percent and was 2.6 percent below the long run 1972-2020 average.
• The November 27^th report by the Department of Commerce, Census Bureau on Durable Goods Ordered during October 2024, orders increased by 2.5 from the previous month. Shipments were up 1.8 percent. Excluding the Transportation component, new orders in November increased by 0.1 percent. Excluding the Defense category new orders were up by 0.4 percent compared to October.
• In a November 4^th release the Census Bureau confirmed that factory orders for U.S. manufactured goods fell 0.5 percent in September and compared to a revised fall of 0.8 in August. Shipments of manufactured goods were down 0.4 percent in September.
• The November 15^thS. Census Bureau release of the advanced estimate of retail and food sales data for October was up 0.4 percent from the revised September value of a 0.8 percent increase and up 2.8 percent over 12 months. Food service sales were up 0.1 percent from September and up 2.7 percent over 12 months. Grocery store sales were up 0.1 percent from the revised September value ($75,793 million) and up 2.5 percent over the past 12-months. The Federal Reserve FOMC closely monitors retail sales as a measure of the trend in inflation.
• The October 31^st release by the Institute for Supply Management (ISM®) reported a lower Manufacturing Index for October at 46.5 compared to the September value of value of 47.2. The October value was still below the bifurcation point of 50 percent between contraction and expansion. The Prices Index rose to 54.8 points in October compared to 48.3 points in September, denoting higher costs for production. U.S manufacturing does not currently reflect an improved economy, and manufacturing has yet to recover from prolonged high benchmark interest rates. The Production Index for October was 46.2 points compared to 49.8 in September.
• On October 31^st the U.S. Bureau of Labor Statistics reported a 0.8 percent increase in the Employment Cost Index (ECI) over the 3^rd quarter of 2024. The year-over-year increase in wages and salaries was 3.9 percent and with benefit costs up by 5.8 percent. The ECI is closely followed by the Federal Reserve FOMC and this data justified in part the 50 basis point drop in the benchmark interest rate in September and strengthens the possibility of additional rate cuts.
• The November 26^th Consumer Confidence Report prepared by The Conference Board for November, recorded a substantial increase to 111.7 from the revised October value of 109.6, with all segments up and representing the most optimistic values over the past two years.. The Present Situation Index measuring perceptions of current business conditions rose 4.8 points to 140.9 in November. The Expectations Index increased from a revised October value of 91.9 to 92.3 and was the fifth consecutive month above 80. Values below this threshold over consecutive months and with a downward trajectory are regarded as predicting a recession.
• The November 22^nd University of Michigan Index of Consumer Sentiment for November rose to 71.8 from the final October value of 70.5 and compared with a value of 61.3 in November 2023. The Current Economic Index was 63.9 in November, down from 64.9 in October. The Index of Consumer Expectations was 76.9 up from 74.9 in October, denoting improvement in consumer sentiment following the September and November rate cuts and lower inflation. Geopolitical factors and uncertainty over the economic policies of the incoming Administration have influenced sentiment in divergent directions depending on political persuasion. In perspective sentiment is 17.7 percent above November 2023 and 40 percent above the low in June 2022.
• Non-farm payrolls added an unanticipated low 12,000 in October, as documented by the Bureau of Labor Statistics in a November 1^st This was far lower than the anticipated 113,000, due to the impact of Hurricanes and strikes should be compared to the upwardly revised September value of 223,000. The unemployment rate held at 4.1 with 7.0 million unemployed and with 1.6 million in the long-term category. The real average hourly earnings value during October was $30.48. Average hours worked in manufacturing was higher at 34.3 hours per week. Labor participation was at 62.6 percent 0.1 percent lower from September. Wage rates increased 4.0 percent over 12-months. Wage rates are closely followed by the Federal Reserve FOMC.
• The Bureau of Labor Statistics Job Openings and Labor Survey report (“JOLTS) released on October 29^th estimated 7.44 million job openings at the end of September, unexpectedly below a forecast of 8.00 million and lower than the revised August value of 7.86 million. The September job openings number was the lowest since January 2021 and was down 1.2 percent over 12 months. The peak job openings figure was 12.2 million in March 2022 during COVID. The September hiring rate was 3.5 percent (5.5 million hires); the September total separation rate, 3.1 percent (5.2 million); the quit rate 1.9 percent (3.2 million); and the layoff rate 1.2 percent, up 0.2 percent from August at 1.8 million.
• The seasonally adjusted initial jobless claims figure of 213,000 released on November 27^th for the week ending November 23^rd was unexpectedly down by 1,000 from the revised value of 215,000 for the previous week and the lowest value since May. The weekly value was lower than the Reuters estimate of 216,000. The four-week moving average declined to 217,000. The Bureau of Labor Statistics estimated 1.907 million continuing claims for the week ending November 16^th (up 39,000 from the revised value for last week), compared to a peak on November 27^th 2021 at 1.928 million. The October unemployment rate held at 4.1 percent. There is clear evidence from data over the past three months that the labor market is cooling as confirmed by Chairman Powell in Congressional testimony and release of downward revised figures for job creation. The jobs market is still tight, but with sporadic weekly fluctuation in new claims due to weather, strikes or scheduled plant shutdowns. Unemployment data has now recovered from the confounding effects of Hurricanes Helene and Milton and the strike by Boeing machinists, now settled, that contributed to claims of 100,000 in October.
• The November 7^th Bureau of Labor Statistics report recorded a 2.2 percent increase in non-Farm Productivity for Q3 2024. Labor cost increased by 1.9 percent compared to 0.9 percent for Q2 2024. Output was up by 3.5 percent.
• The ADP® reported on October 30^th that private (excluding government data) payrolls increased by an unexpected 233,000 in October, up 74,000 from the revised 159,000 in September and compared to a consensus estimate of 111,000 jobs. The increase in employment was mostly in the service-related sectors amounting to 211,000 positions. Individual categories included the Transportation, Trade and Utilities sector, (+51,000); Construction, (+37,000); Hospitality, (37,000); and Professional and Business Services, (+20,000); Information (+7,000). Manufacturing was down 19,000. Annual pay was up 4.6 percent year-over-year for ‘job-stayers’, down 0.1 percent from August 2024. The increase as reported by ADP will not directly influence the probability of short-term future changes in interest rate since the number, although based on 25 million positions, excludes the public sector. Monthly ADP data is regarded as less reliable by the FOMC than the Bureau of Labor Statistics Monthly non-farm payroll report.

USDA Weekly Egg Price and Inventory Report, November 29^th 2024.

Market Overview

• The average wholesale unit revenue values for Midwest Extra-large and Large sizes were unchanged on average this past week. Medium size was also unchanged. The 5-day rolling National wholesale price for graded loose on November 22^nd was $2.72 per dozen down 23.2 percent from $3.55 last week. This value was approximately $0.93 above the 3-year average of $1.79 per dozen and $0.97 above the corresponding week in 2023 at $1.75 per dozen. This past week shell egg inventory was down a substantial 17.6 percent, compared to a fall of 0.6 percent during the previous week. During the past week the NYC wholesale price fell 1.0 percent but with the immediate prospect of a plateau through the coming week. The shortfall in inventory with a small decline in wholesale price denotes steady consumer demand relative to supply but with a sharp upturn in orders by chains in anticipation of Thanksgiving purchases. Despite declines in price as reported by USDA over the past few days there is an anticipation of higher margins for producers through December despite steady replacement of depopulated flocks. Relatively higher prices compared to 2023 are attributed to previous losses due to HPAI in 2024 reducing the national flock by 13 million hens with increased seasonal demand.
• Although there are predetermined weekly transfers of mature pullet flocks to laying houses, the size of the producing flock is constrained by depopulation due to HPAI. During April 2024 almost 8.4 million hens were depopulated with an additional 5.7 million during May and 3.0 million in July. USDA recorded depopulation of 2.8 million hens in October and approximately 3 million in November to date, as incident cases of the fall 2024 wave. There is currently a deficit of approximately 13 million hens compared to the 2022 flock of 326 million at the onset of HPAI.
• This past week, chains apparently widened the spread between delivered cost and shelf price. The reoccurrence of HPAI has probably created concern among chain buyers as they may previously have been reticent to place orders even with moderating prices notwithstanding the need to ensure adequate stock levels to meet demand. Inventory levels will depend on constant re-ordering to fill the pipeline into the Christmas surge. Discounters are raising prices on generics influencing mainstream retail stores. Eggs are now less competitive in price against the comparable costs for other protein foods, and have recently been highlighted as a contributor to the prevailing perception among consumers of ongoing food inflation.
• Total industry inventory was down by a noteworthy 15.2 percent overall this past week at 1.44 million cases including a 3.3 percent decrease in breaking stock, following a 2.3 percent fall during the preceding week attributed to diversion to the shell-egg market.
• It is apparent that the inventory held by chains and other significant distributors may be more important on a weekly basis in establishing wholesale price compared to the USDA regional inventory figures. Changes in stock held by DCs and in the pipeline as determined by weekly orders are probably responsible for up to three percent cyclic fluctuation in weekly industry stock, but especially evident into a holiday weekend as evidenced by inventory this past week.
• The U.S. poultry industry has moved from a quiescent period regarding HPAI into a fall upsurge with incident cases in northern Utah, southern Washington State and Oregon in October and the loss of two complexes in the Central Valley of California this month. Two outbreaks were diagnosed in non-commercial flocks in Hawaii with both under investigation. California has recorded outbreaks on broiler-growing farms in four counties recently with ongoing losses among turkey growing farms. Canada has diagnosed cases in The Fraser Valley of British Columbia and outbreaks in Alberta Quebec and Saskatchewan. Over 616 confirmed cases of bovine influenza-H5N1 have been diagnosed in dairy herds in fifteen states in 2024 with more than 335 herds in California over three months. This is a cause for concern since extension to laying flocks has occurred in Michigan, Colorado and Utah. More surveillance information should be released by USDA-APHIS as it becomes available, concerning the prevalence rate of avian carriers of H5N1 among resident domestic and migratory free-living birds. This data should be correlated with a review of molecular and field epidemiology for the past spring outbreaks in order to respond appropriately to the fall wave of HPAI in progress. The USDA has yet to identify and release specific modes of transmission for the 2022-2024 epornitic including likely airborne spread from wild birds and their excreta over short distances as suggested by current research.
• The established relationship between producers and chain buyers based on a single commercial price discovery system constitutes an impediment to a free market. The benchmark price appears to amplify both downward and upward swings as evidenced over the past three years. A CME quotation based on Midwest Large, reflecting demand relative to supply would be more equitable. If feed cost is determined by CME ingredient prices then generic shell eggs should be subject to a Midwest Large quotation.
• On November 27^th the stated total flock of 314.2 million, was down by 1.6 million from last week, including about one million molted hens that will resume lay during coming weeks plus 4.5 to 5.0 million pullets scheduled to attain production before the pre-Christmas surge in demand. Given the latest figures for depopulation in Utah, Washington State, Oregon and California it is estimated that the total egg- producing flock is approximately 13 million hens lower than the 326 million before the onset of HPAI in 2022.
• The ex-farm price for breaking stock (rounded to one cent) was down 6.7 percent to $2.72 per dozen.Checks delivered to Midwest plants were down 0.4 percent to $2.56 per dozen this past week. Prices for breaking stock generally follow the wholesale price for shell eggs but with a lag of one to two weeks that may be shorter as in the present situation with diversion to the shell market.

The Week in Review

Prices

According to the USDA Egg Market News Reports, released on November 25^th 2024, the Midwest wholesale price (rounded to one cent) for Extra-large was unchanged from last week at $4.08 per dozen. Large size was unchanged at $4.06 per dozen. Mediums were unchanged at $3.71 per dozen delivered to DCs.

The stock of Medium size was down 3.8 percent and the inventory of Small size was down 14.5 percent over the past week suggesting that additional pullets placed in August for the late November through mid-December surge in demand are progressing in production. This has implications for prices during January 2025.

Prices should be compared to the USDA benchmark average 4-Region blended nest-run cost of 74.6 cents per dozen as determined by the Egg Industry Center based on USDA data for October 2024. This value excludes provisions for packing, packaging materials and transport, amounting to 57 cents per dozen as determined in mid-2023 from an EIC survey (with a low response) and now realistically 60 cents per dozen.

Updated November 2024 USDA Projection for U.S. Egg Production and Consumption.

On November 15^th 2024 the USDA Economic Research Service (ERS) issued actual values for egg production during 2023 with a projection for 2024 and a forecast for 2025. Production, consumption and prices were revised from the previous October 18^th 2024 report.

Projected egg production for 2024 was almost unchanged from the October 2024 Report to 7,783 million dozen This will be 1.0 percent less than in 2023 due to progressive depletion of hen flocks due to HPAI through November with incident cases reoccurring this month. The per capita consumption of shell eggs and liquids combined for 2024 will be 274.1 eggs down 5.2 eggs (-1.9 percent) from 2023. The projected average 2024 benchmark New York bulk unit price was raised 93 cents to 285 cents per dozen from 2023.

Subsequent USDA projections will provide greater clarity on the recovery in consumption in an economy that is undergoing deflation. The 2023 Midwest in-carton national wholesale price peaked at $5.17 per dozen on January 3^rd 2023 but fell precipitously to a market bottom of $0.78 per dozen on May 8^th 2023. Midwest Large wholesale price was restored during May 2024 and despite substantial declines during late August through September attained $2.16 per dozen for eggs in cartons delivered to DCs on October 18^th 2024. The Midwest wholesale Large value should be compared to the USDA/EIC projection of the combined nest-run October 2024 cost of 76 cents per dozen for caged white Large, plus a provision for processing, packaging and transport of 60 cents per dozen amounting to $1.36 cents per dozen.

Restoration in flock size after HPAI flock depletions in 2022 progressed at a rate of approximately 0.5 million per week but placements were limited by the availability of pullet chicks and in some companies the rate of conversion to alternative housing systems. Restoration of the national flock was compromised by a resurgence of HPAI with 13.0 million layers depleted during the 4^th quarter of 2023 representing 4.0 percent of the nominal producing flock of 326 million hens, mainly on complexes averaging over one million hens. Unpredictable factors affecting price will include the extent of anticipated losses during the fall migratory season that to date has claimed four significant complexes with a total of 4.6 million birds. Approximately 24 million hens were lost to HPAI year-to-date in five states. At present the national egg-producing flock is down by13 million hens compared to the complement of 326 million at the beginning of the 2022 epornitic.

Exports of eggs and products at approximately 2.3 percent of total production over the first nine months of 2024 did not materially affect the domestic price.

The USDA forecast for 2025 includes production of 8,110 million dozen, up an optimistic 4.2 percent from 2024. Projected consumption of 285 eggs per capita, would be a speculative 11 egg (4.0 percent) increase over 2024 This forecast probably presumes complete control of HPAI and an adequate supply of replacement chicks and pullets, both unrealistic assumptions. The increase, if it were to transpire would depress the NY Large benchmark price to an average of $2.00 per dozen over 2025.

During 2023 shell egg exports attained 89.4 million dozen, up 28.6 percent compared to 2022 when high domestic prices prevailed. Egg products were up 18.2 percent to 20,814 metric tons compared to 2022.

Over the first nine months of 2024, 61.9 million dozen shell eggs were exported valued at $141.5 million. Volume was 7.9 percent lower but value was 11.6 percent higher compared to the corresponding months in 2023.

Over the first nine months of 2024, 19,359 metric tons of egg products were exported valued at $86.7 million. Volume and value were respectively 15.2 and 111.8 percent lower compared with the corresponding months in 2023.

Updated October 2024 USDA data is shown in the table below:-

*Data influenced by HPAI losses. Recovery in 2025 considered unrealistic

Source: Livestock, Dairy and Poultry Outlook released November 15^th 2024

Subscribers to EGG-NEWS are referred to the postings depicting weekly prices, volumes and trends and the monthly review of prices, exports and related industry statistics.

Export of Shell Eggs and Products, January-September 2024.

The volume of exports of shell eggs is conditioned by the domestic needs of importers, price against competitors and regulatory disease and logistic restraints. This is demonstrated by the 182 percent drop in volume of shell egg exports from 2012 (198 million dozen) to 2022 (70 million dozen). Due to depletion of flocks in 2023, export prices increased 113 percent from $1.02 per dozen to $2.16 per dozen reflecting domestic prices. Depressed exports persisted in 2023 with 90 million dozen shell eggs exported at an average price of $1.80 per dozen as losses from HPAI rose in the last quarter with a consequential rise in domestic price. This situation persisted through the first half of 2024 but with prospects for improved volume based on prices stabilizing moderately above seasonal levels through the 4^th quarter.

It is probable that lost markets other than in the USMCA and Caribbean nations will be reclaimed over the intermediate term. Sporadic and short-term exports may be made to various nations based on supply disruption caused by HPAI or other factors.

USDA-FAS data collated by USAPEEC, reflecting export volume and values for shell eggs and egg products are shown in the table below comparing 2024 with 2023:-

                           U.S. EXPORTS OF SHELL EGG AND EGG PRODUCTS DURING

                                     JANUARY-SEPTEMBER 2024 COMPARED WITH 2023

SHELL EGGS

Shell egg exports from the U.S. during the first nine months of 2024 declined by 7.9 percent in volume but was up 11.6 percent in total value compared to the corresponding months in 2023. Unit value increased by 20.6 percent to $2.28 per dozen compared to the corresponding period in 2023.

Shell egg exports from the U.S. during September 2024 increased by 10.1 percent in volume but were higher by 123.1 percent in total value compared to the corresponding month in 2023. Unit value increased by 102 percent to $2.77 per dozen compared to September 2023.

Canada was the leading importer of shell eggs during the first nine months of 2024, with 44.7 million dozen representing 72.2 percent of volume and 72.5 percent of the total value of U.S. shipments of shell eggs. Unit price over January-September 2024 was $2.30 per dozen compared to $2.24 per dozen for all consignments in January-September 2023. Imports by Canada are driven by consumer demand balanced against availability through the controlled supply situation. This inhibits flexibility, necessitating imports from the U.S. to supply shortfalls especially when additional losses occur due to HPAI or under conditions of high demand. This model assures the approximately 1,000 independent producers a stable income but is supported by higher prices to consumers. During September 2024 Canada imported 6.7 million dozen up 91.4 percent over the corresponding month in 2023. Value was up 302 percent to $19.7 million. Unit value was 150.8 percent higher to $3.26 per dozen.

The Caribbean Region (Bahamas, Netherlands Antilles, Cayman Islands, and others) was a distant second in shell egg imports from the U.S. valued at $23.6 million during January-September 2024, with 10.3 million dozen representing 16.6 percent of volume and 16.7 percent of the total value of U.S. shipments of shell eggs. Unit price over January-September 2024 was 13.0 percent higher to $2.30 per dozen.

Mexico was the third-ranked importer of shell eggs in January-September2024 based on a volume of 1.8 million dozen representing 2.9 percent of export volume and 2.3 percent of value. Unit value of $1.76 per dozen is compared to an average value of $2.29 per dozen for all exports. During September Mexico imported 0.2 million dozen shell eggs from the U.S. valued at $0.4 million principally as breaking stock.

EGG PRODUCTS

The total volume of exported egg products during the first nine months of 2024 decreased 15.2 percent to 19,359 metric tons compared to January-August 2023. Total value of $86.7 million was lower by 11.0 percent compared to January-September 2023. Unit value increased by 4.0 percent to $4,479 per ton compared to January-September 2023. During 2023 the U.S. exported 29,814 metric tons of egg products valued at $134.3 million with a unit price of $4,505 per metric ton. Fluctuation in unit price reflects the composition of exports and the relationship between World supply and demand. Ukraine is now restrained in production but India continues as a significant exporter.

Japan was the leading importer by volume of U.S. egg products during January-September 2024 receiving 5,563 metric tons from the U.S. valued at $25.2 million representing 28.7 percent of volume and 29.1 percent of value with a unit price of $4,530 per metric ton. Volume for January-September 2024 was down by 33.4 percent and value was lower by 37.5 percent compared to the corresponding months in 2023. During September 2024 Japan imported 590 metric tons, down 26.3 percent over the corresponding month in 2023. Value was down 7.7 percent to $2.8 million and unit value was 14.7 percent lower at $4,745 per metric ton. During 2023 Japan imported 10,352 metric tons of egg products from the U.S., valued at $49.9 million. With the conclusion of a bilateral trade agreement, the U.S. should no longer be at a competitive disadvantage with respect to the E.U.

Mexico was the 2^nd ranked importer from the U.S. during January-September 2024 based on a volume of 3,853 metric tons with a value of $14.8 million, representing 19.9 percent of volume and 17.6 percent of the total value of U.S. exports of egg products. Exports to Mexico were up by 6.9 percent in volume but 15.9 percent lower in value compared to January-September 2023. The unit value of $3,841 per metric ton can be compared with the average unit value for U.S. exports of all egg products at $4,479 per metric ton. During September 4^th ranked Mexico imported 313 metric tons valued at $1.6 million. Volume was 22.2 percent higher and value was 60.0 percent above September 2023 with a unit value of $5,111 per metric ton.

Canada was the 3^rd-ranked importer over January-September 2024 based on a volume of 2,916 metric tons with a value of $11.4 million. Canada represented 15.1 percent of volume and 13.1 percent of value with a unit price of $3,909 per metric ton. During September Canada was       2^nd- ranked as an importer with 356 metric tons representing 21.8 percent of exports of egg products down 25.0 percent from September 2023. Value was $1.8 million or 22.6 percent of the monthly total, down 25.1 percent from September 2023 with a unit revenue of $5,056 per metric ton. Volumes shipped reflect restoration of the institutional and food service sectors and the relative availability of domestic product in Canada.

The E.U.-27 maintained to the 4^th-ranked position among importers of U.S. egg products over the first nine months of 2024 with 1,800 metric tons. Value was $14.7 million with a high unit price of $8,166 per metric ton. During September the E.U. imported 111 metric tons of egg products valued at  $0.7 million with a unit price of $6,300 per metric ton, up 126 percent in volume and 58.8 percent in value.

South Korea was ranked 5^th among importers of egg products during January-September 2024 with a volume of 1,336 metric tons. Export value was $5.5 million with a unit value of $4,116 per metric ton. Comparing these values with the corresponding months in 2023, volume was 91.4 percent higher and value was up by 48.6 percent. Most flocks in South Korea have been restored to production after depopulation following 2022-3 outbreaks of HPAI. Import volume will be influenced by the trend in flock depletions. South Korea imported 44 metric tons during September  2024 but no product during August. During 2023 South Korea imported 1,141 metric tons valued at $5.3 million. Depending on severity, the return of HPAI may result in a disparity between local availability and demand requiring imports in 2024 as in 2022.

Australia has emerged as an importer of egg products with 827 metric tons shipped during the first nine months of 2024 valued at $2.6 million with a unit price of $3,144 per metric ton. There were no imports in April, but 151 metric tons were shipped during both May and June and 92 tons in August. Depending on the HPAI situation that has required depopulation of 7 percent of the Nation’s hens, additional orders for shell eggs and products may be forthcoming.

COMMENTS

Exports to Canada and Mexico combined in 2022 amounted to $126.5 million in value equivalent to 47.5 percent of the total value of shell eggs and products shipped. During 2023 exports valued at $150.7 million represented 50.8 percent of shell egg and egg products amounting to $296.5 million. Canada represented 59.0 percent of the $162.2 million for shell eggs and 10.3 percent of egg products valued at $121.2 million, consigned during 2023, emphasizing dependence on this USMCA partner. During the first nine months of 2024 the USMCA imported shell eggs and products valued at $131.4 million. This represented 57.6 percent of all U.S. egg and product exports valued at $228.2 million.

Aspirational volumes of exports in excess of five percent of domestic production are unrealistic. The E.U., Japan, South Korea and Taiwan will indent according to their needs for undifferentiated shell eggs and products based on landed price in a competitive World market. Purchase decisions for commodities are determined by FOB price, freight, duty and broker margins. Shell eggs and the various categories of egg products are essentially commodities and generally do not respond to promotion. The recent appointment of a manager responsible for promoting exports and trade-related missions (‘junkets’) are inconsistent with prudent use of check-off funds. This opinion is based on an understanding of the factors motivating imports comprising need and price. The reality is that U.S. exports are heavily concentrated among our two USMCA partners in addition to the Caribbean region based on proximity and price.

Exports will be dependent on the willingness of importers to accept the World Organization for Animal Health (WOAH) principle of regionalization (zoning) in the event of outbreaks of exotic Newcastle disease or isolation of either H5 or H7 avian influenza (AI), in commercial flocks, irrespective of pathogenicity. Most importing nations are now applying regionalization and permitting imports on a zonal, county or state-exclusion basis following H5 or H7 AI infection. Canada and the U.S. operate according to a 2018 bilateral agreement to maintain trade in the event of outbreaks of catastrophic exotic diseases including HPAI and END.

Generally pasteurized egg products should not be subject to any embargo imposed following reports of AI or Newcastle disease in a region.

Status of 2024 Corn and Soybean Crops

The USDA Crop Progress Report released on November 12^th recorded 96 percent of the soybean crop harvested, an advance of 2 percent this past week. Ninety five percent of the corn crop has has been harvested, up 4 percent from last week. Both crops were ahead of the 5-year averages by 5 percent and 11 percent respectively compared to the corresponding week in 2023. At the end of each season extending into mid-November progress in completing the harvest slows following the principle of diminishing returns as poor quality and late-planted fields remain.

Consistent with seasonal temperatures and previous rainfall across the Midwest and Plains states, crop condition was assumed to have remained unchanged during the past four weeks in the absence of reports. Prospects for high corn and soybean yields were reflected in stable price projections in the WASDE. The CME futures prices for November and December (‘new crop’) delivery were higher by less than five percent compared to the USDA projections.  

Heat stress that occurred during silking predisposes corn to fungal infection leading to mycotoxin contamination of kernels. Unseasonal rain during the immediate pre-harvest period for corn will also contribute to the elaboration of mycotoxins. The status of the 2024 crop in regions will require monitoring post-harvest in affected areas and especially if unseasonal precipitation occured during the late pre-harvest period. Initial assays suggest corn with elevated DON in some regions.

Reference is made to the November 8^th WASDE Report #654 retrievable under the Statistics TAB, and the weekly Commodity, Economy and Energy Report, in this edition, documenting acreage harvested, yields, weekly prices and ending stocks. Data for 2024 will be updated finally in the December WASDE to be summarized in the December 14^th edition of EGG-NEWS.

The November WASDE presumably incorporated the results of the USDA-NASS annual remote survey on yields and final production. Pro Farmer completed their annual crop tour in mid-August. The November WASDE report estimated U.S. corn yield at 183.1 bushels per acre (compared to the Pro Farmer estimate of 183.8 bushels per acre) with a projected crop of 15.14 billion bushels. (Pro Farmer, 15.20 billion bushels). The corresponding values for soybeans were a yield of 51.7 bushels per acre (Pro Farmer 53.1 bushels per acre) contributing to a 2024 crop of 4.46 billion bushels. (Pro Farmer 4.93 billion bushels).

REVIEW OF OCTOBER 2024 EGG PRODUCTION COSTS AND STATISTICS.

Commencing in January 2024 the EIC justifiably separated the production costs and unit revenue values for eggs derived from caged and cage-free flocks. Accordingly, EGG-NEWS will continue to summarize data but will consolidate production and export statistics for the U.S. egg industry as a total and compare financial data for the two shell-egg categories.

SEPTEMBER HIGHLIGHTS

• October 2024 USDA ex-farm blended USDA nest-run, benchmark price for conventional eggs from caged hens was 256 cents per dozen, up 16 cents per dozen or 6.7 percent from the September 2024 value of 240 cents per dozen. For comparison, average monthly USDA benchmark price over 2023 was 146.0 cents per dozen with a range of 323 cents per dozen in January down to a low of 57 cents in May. Stock levels and prices prior to the onset of flock depletions due to HPAI indicated a relative seasonal balance between supply and demand. Future nest-run and wholesale prices will be largely dependent on consumer demand for shell eggs and products and the rate of replacement of pullets and hens depleted due to HPAI. Other considerations include diversion to shell sales from the egg-breaking sector in an interconnected industry.
• Fluctuation in wholesale price is attributed in part to the amplification of upward and downward swings associated with the commercial benchmark price discovery system in use. Highly pathogenic avian influenza has emerged as a consideration with resumption of migration of waterfowl. Close to 13 million hens and 2.5 million pullets were depopulated during the fourth quarter of 2023 among five states with heavy losses in California. Approximately 17 million hens and 1.5 million pullets have been depleted year to date.
• October 2024 USDA average nest-run production cost for conventional eggs from caged flocks over four regions (excluding SW and West), applying updated inputs was almost unchanged from September at 74.6 cents per dozen. Approximately 60 cents per dozen should be added to the USDA benchmark nest-run cost to cover processing, packing material and transport to establish a realistic price as delivered to warehouses.
• October 2024 USDA benchmark nest-run margin for conventional eggs attained a positive value of 181.4 cents per dozen compared to a revised positive margin of 165.1 cents per dozen in September 2024. Average nest-run monthly margin over 2023 was 64.2 cents per dozen compared to 155 cents per dozen in 2022. This differential was mainly due to higher prices following HPAI-depletion of flocks. It is emphasized that the U.S. benchmark price reflects nest-run conventional eggs.
• The September 2024 national flock in production (over 30,000 hens per farm) was stated by the USDA to be up 4.4 million hens (rounded) to 243.7 compared to the revised August 2024 value of 289.3 million. Approximately 3.0 million hens returned to production from molt in September together with projected maturation of 21.5 million pullets, with this number offset by depletion of an unknown number of spent hens.
• September 2024 pullet chick hatch of 26.6 million was down 6.6 percent or 1.9 million chicks from August 2024.
• September 2024 exports of shell eggs and products combined were up 4.2 percent from August 2024 to 464,000 case equivalents representing the theoretical production of 6.2 million hens. The moderate increase was due to higher imports of shell eggs by Canada and egg products by Caribbean, South American and E.U nations based on need and price.
•  

TABLES SHOWING KEY PARAMETERS FOR OCTOBER 2024.

Summary tables for the latest USDA October 2024 flock statistics, costs and unit prices made available by the EIC on November 8^th 2024 are arranged, summarized, tabulated and compared with values from the previous October 9^th 2024 release reflecting September 2024 costs and production data as applicable. Monthly comparisons of production data and costs are based on revised USDA values.

OVERVIEW

The USDA provided updated projections for the production of corn and soybeans in the November 8^thWorld Agriculture Supply and Demand Estimates (WASDE) #654, reflecting the 2024 crop. Production values for corn and soybeans were updated from the September edition and are based on actual field data. Projections of crop size and ending stocks are derived from acreage planted, updated yields from the harvest approaching completion, carry-forward levels from 2023, and with the latest assumptions relating to domestic use and exports.

The November 8^th WASDE report predicted that corn would be harvested from 82.7 million acres, unchanged from the October projection. The soybean crop will be harvested from 86.3 million acres, unchanged from the October report.

The November WASDE reduced the yield value for the 2024 corn crop by 0.4 percent to 183.1 bushels per acre. By comparison yield was 174.9 bushels per acre in 2023. The November projection of soybean yield was lowered by a substantial 2.6 percent from the previous WASDE to 51.7 bushels per acre compared to 49.9 bushels per acre in 2023.

The October USDA projection for the ending stocks of corn was down 2.8 percent to 1,999 million bushels. The October USDA projection for the ending stock of soybeans was unchanged at 550 million bushels.

The November 2024 WASDE held the projection of corn price at 410 cents per bushel. The projected average season price for soybeans was held at 1,080 cents per bushel. The price of soybean meal was unchanged at $320 per ton. Projected commodity prices suggest stable to lower feed costs for livestock and poultry producers. Row crop farmers will experience lower margins or in some areas corn will be below break-even given relative production costs and per bushel price. This situation has contributed to an impasse in the decisions of the respective House and Senate Agriculture Committees regarding allocation of funding for the combination of nutrition support and conservation over farm commodity price supports in the delayed Farm Bill.

Projections for world output included in the November 2024 WASDE report, reflect the most recent estimates for the production and export of commodities especially in the Southern Hemisphere with an emphasis on Argentine and Brazil. Economists also evaluated the likely impacts from a transition to a La Nina event especially on South America. Hostilities are ongoing in Ukraine following extensive destruction of agricultural infrastructure by the Russian Federation. Production and hence exports of wheat, corn and sunflower from Ukraine will be reduced compared to pre-war averages.

It is accepted that USDA projections for export are also based on the perceived intentions and needs of China. This Nation has sharply curtailed purchases of commodities and especially U.S. soybeans during the current market year despite fiscal stimulus with a projected recovery of the Nation’s economy influencing consumer demand for food and fuel.

Reports on volumes of commodities exported are included in weekly editions of EGG-NEWS, derived from USDA-FAS sales data. Weekly Crop Progress reports will be posted through late November

EGG-NEWS summarizes and comments on data and trends in the monthly USDA Cage-Free Report. This data is correlated and interpreted in the WeeklyEggPrice and Inventory Report posted on EGG-NEWS mailed on Fridays each week.

The USDA Cage-Free Report covering October 2024, released on November 1^st 2024, documented the complement of hens producing under the Certified Organic Program to be 20.8 million (rounded to 0.1 million), unchanged from September 2024. Depopulation was carried out in October in Utah, Washington and Oregon as a result of HPAI. The number of hens classified as cage-free (but excluding Certified Organic) and comprising aviary, barn and other systems of housing apparently decreased by 0.24 million hens or 0.2 percent from September 2024 to 106.6 million, despite extensive flock depopulation during the month. Hen numbers posted by the USDA for October are questioned as to accuracy taking into account chick placements and depopulation figures released by APHIS.

The number of eggs collected is accepted as accurate but since the values for average hen-week production are unacceptably high this suggests that the denominator reflecting the number of hens is probably incorrect. Alternatively if conventional eggs from cages are deceptively marketed as cage-free, or if cage free eggs are packed as certified Organic, assuming an accurate number of hens over a given month, the apparent hen-week value would be disproportionally high. The respective numbers of hens claimed for organic and cage-free flocks should reflect the net contribution of chick placements 20-weeks previously, HPAI depopulation and age-related depletion and should correspond to monthly supply data and inventory extending over successive quarters. Unlike conventional cage production cage-free hens are not generally molted reducing this possible reason for error in calculating rates of production.

Average weekly production for Certified Organic eggs in October 2024 was up by 0.4 percent compared to September 2024 with a questionably high average weekly production of 83.9 percent. Average weekly flock production for cage-free flocks other than Certified Organic was up 0.1 percent in October 2024, but with a high average hen-month production of 82.7 percent, up from 82.4 percent. Seasonally, younger flocks increase the availability of cage-free and organic eggs in response to pullet chick placements 20 weeks previously especially in anticipation of periods of peak seasonal demand. Since the proportion of pullets according to housing type is not indicated in the monthly USDA Chickens and Eggs report, it is not possible to assess the relative sizes of flocks producing under the certified organic label or other categories. There is no adequate explanation for the high production rate especially if the reported number of hens is lower than actual, especially with undercounted HPAI flock depopulation.

Negotiated nest-run grade-ready cage-free price for October 2024 averaged $4.12 per dozen, up by 98.0 percent from $2.08 per dozen in September 2024, reflecting higher demand relative to supply. The October 2024 advertised U.S. retail price for cage-free eggs over five regions (excluding NW., AK. and HI.) was $3.31 per dozen up 8 cents per dozen (2.5 percent) from September 2024 but based on only 442 stores. This compares with 659 in September and 4,484 stores in August confirming fewer promotions in October.

The recorded average wholesale price of $4.12 per dozen plus a provision of 60 cents per dozen for packaging, packing and transport, results in a price of $4.62 per dozen delivered to CDs. The average five-region advertised retail price of $3.31 corresponds to a theoretical average retail negative margin of 28.3 percent (+22.3 percent last month unless prices were raised) over the average wholesale delivered price. Margins are presumed higher for non-featured eggs and pastured and other specialty eggs at shelf prices reaching $9.00 per dozen in high-end supermarket chains. Retailers maximizing margins especially on Certified Organic, free-range and pastured categories restrict the volume of sales, ultimately disadvantageous to producers.

Based on the importance of cage-free production, with more than 40 percent of eggs produced, accurate and consistent figures are required. The USDA-AMS issues the Cage-Free report on volumes and prices at monthly intervals for the information of Industry stakeholders. There is obvious doubt as to the accuracy of individual monthly flock numbers in the monthly cage free reports especially with a marked change at the end of a quarter as with values for October 1^st, or from the previous month without obvious cause, or alternatively when there is no change in the cage-free or organic flocks for sequential months.

It is suggested that USDA should consider a quarterly report with more accurate hen data. This would be more useful to the industry for planning and marketing decisions. Price data is available each week from other USDA reports.

Subscribers are referred to weekly USDA wholesale and retail prices posted in the Egg Price and Inventory Report in EGG-NEWS E-mailed each Friday. The previous Monthly Cage-Free Report is available under the STATISTICS Tab.

The USDA quarterly Grain Stocks Report released on September 30^th 2024, documented storage of corn and soybeans, classified according to on-site and remote facilities including elevators and commercial installations. Quantities of the two major ingredients as Prices and commentary are incorporated in the Weekly Energy, Economy and determined by USD-NASS, relevant to the cost of poultry production were:-

“Old crop corn stocks on hand as of September 1^st 2024 totaled 1.76 billion bushels, up 29 percent from September 1^st 2023. Of the total corn stocks, 780 million bushels (44 percent were stored on farms), up 29 percent from last year”. This was down from 61 percent three months ago indicating a sell-off despite declining prices to realize income and make room for the 2024 harvest. “Off-farm stocks, at 980 million bushels, were up 30 percent from a year ago. The June-August 2024 indicated disappearance was 3.24 billion bushels, compared with 2.74 billion bushels during the same period a year earlier”.

“Old crop soybeans stored in all positions on September 1^st 2024 totaled 342 million bushels, up 29 percent from September 1^st 2023. Soybean stocks stored on farms totaled 111 million bushels,  (32 percent) up 54 percent from a year ago. Off-farm stocks, at 231 million bushels, were up 20 percent from last September. Indicated disappearance for June-August 2024 totaled 628 million bushels, up 18 percent from the same period a year earlier”.

The weekly Economy, Commodity and Energy Report posted each week and a summary of the WASDE #652 released on September 12^th is retrievable under the STATISTICS tab.

THE USDA Agricultural Prices Report released October 31^st posted September prices for agricultural commodities and expenditures.

September Prices Received Index, down 2.9 percent from August

 The USDA ERS summarized prices as follows:-“The September Prices Received Index 2011 Base (Agricultural Production), at 122.6, decreased 2.9 percent from August and 7.1 percent from September 2022. At 113.9, the Crop Production Index was down 4.2 percent from last month and 11 percent from the previous year. The Livestock Production Index, at 133.1, decreased 0.9 percent from August, and 2.6 percent from September last year. Producers received lower prices for corn, hogs, soybeans, and lettuce during September, but higher prices for broilers, milk, grapes, and broccoli. In addition to prices, the volume change of commodities marketed also influences the indexes. In September, there was decreased marketing of cattle, wheat, cotton, and peaches and increased monthly movement for soybeans, corn, dry beans, and apples”.

September Prices Paid Index, Up 0.1 Percent from August

“The September Prices Paid Index for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 138.8, is up 0.1 percent from August 2023 but unchanged from September 2022. Higher prices in September for feeder cattle, feeder pigs, diesel, and nitrogen more than offset lower prices for feed grains, complete feeds, concentrates, and hay & forages”.

Corn farmers received $5.21 per bushel in September 2023 compared to $5.73 per bushel in August 2023, down 9.1 percent. The price received in September 2022 was $7.09 per bushel

Soybean farmers received $13.20 per bushel in September 2023 compared to $14.10 per bushel in August 2023, down 6.8 percent. The price received in September 2022 was $14.20 per bushel

The September 2023 egg price received by farmers was $ 1.22 per dozen for table eggs lower than $1.35 per dozen in August 2023 and compared to $2.65 per dozen in September 2022. The sharp year-on-year increase is attributed to disequilibrium between supply and demand. Highly pathogenic avian influenza resulted in depletion of 44 million hens with a reduction of 20 million producing birds in the supply flock on average from mid 2022 onwards. This situation was coupled with increased demand as consumers increased purchases of eggs representing a competitively priced protein source in an inflationary environment.

The June 30^th 2023 Planted Acreage report documented the respective areas planted to corn and soybeans, the two commodities of relevance to the poultry industry. The USDA confirmed:-

Corn-planted area for all purposes in 2023 is estimated at 94.1 million acres, up six percent or 5.52 million acres from last year. This represents the third highest planted acreage in the United States since 1944. Compared with last year, planted acreage is expected to be up or unchanged in 43 of the 48 estimating States. Area harvested for grain, at 86.3 million acres, is up nine percent from last year.

Soybean-planted area for 2023 is estimated at 83.5 million acres, down five percent from last year. Compared with last year, planted acreage is down or unchanged in 21 of the 29 estimating States.

Together with the Grain Stocks report the Planted Acreage data moved the market for corn and soybeans by about five percent but in contrasting directions.

For corn the acreage was above the most optimistic projection although offset by a lower stock. At 14H30 on the CME after the release of the two USDA reports, corn was down 25 cents per bushel to 556 cents for July delivery and for September, corn was down 34 cents per bushel to 489 cents.

For soybeans the reduced acreage and consequently lower ending stocks was bullish for the new crop. At 14H30 CME soybeans were up 75 cents per bushel to 1,558 cents for July delivery and for September the soybean price was up 73 cents per bushel to 1,354 cents.

According to USDA economists, retail egg prices increased by 8.5 percent in January 2023, approximately 70.1 percent above January 2022.  The USDA-ERS now predicts that egg prices will increase by 37.8 percent in 2023 but with a wide range of 18.3 to 62.3 percent attributed to volatility.  Concurrently the USDA-ERS predicted a 4.7 percent increase in the price of meats, 7.2 percent for dairy products and 12.8 percent for cereals and bakery products.

Wholesale farm-level egg prices are predicted to increase by 7.4 percent in 2023 with a wide prediction interval of -32.6 to 76.1 percent.  Egg prices are extremely volatile, complicating reliable predictions.

EGG-NEWS will monitor weekly USDA wholesale prices by region and average retail prices to document retail margins.