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February 21, 2025 - Negotiated wholesale prices for graded loose eggs continue firm to higher with a higher undertone. Demand for retail business is moderate to good with less interest at food service. Offerings are very light to light with little chance for improvement in the nearterm as highly pathogenic avian influenza (HPAI) continues to impact productive flocks. Supplies remain very light to moderate. Trading is active for available offerings. Prices for national trading of trucklot quantities of graded, loose, White Large shell eggs increased $0.33 to $8.07 per dozen with a higher undertone. The wholesale price on the New York market for formula trading of Large cartoned shell eggs delivered to retailers rose $0.24 to $8.47 per dozen with a firm undertone. In the major Midwest production region, wholesale prices for Large, white, shell eggs delivered to warehouses increased $0.28 to $8.09 per dozen with a firm undertone while prices paid to producers for Large cartoned shell eggs increased $0.28 to $7.92 per dozen. The California benchmark for Large shell eggs rose $0.05 to $9.22 per dozen with a firm undertone. Delivered prices on the California-compliant wholesale loose egg market increased $0.99 to $9.68 per dozen with a higher undertone.
Shell egg demand increased over the past week as marketers continue to struggle to cover their needs from reduced shell egg supplies resulting from continued outbreaks of HPAI in commercial layer flocks. Spot market bids are routinely outpacing offers, often by as much as factor of ten, and prices are setting records on a daily basis. Shell egg shortages, once limited to certain regions, are impacting most major markets as the continued HPAI outbreaks are hindering any attempts at flock recovery. Grocers continue to limit consumer purchasing to stretch existing supplies but this has heightened consumer awareness of the egg shortage leading to an increase in opportunity buying which further reduces available supplies. Demand from egg products manufacturers remains very light as most opt to reduce their breaking schedules and work from owned production and stocks to meet their basic contractual needs.
Feature activity for conventional caged Large shell eggs is very limited with a few ads in the Northeast and the average ad price is up $1.31 per dozen over the last test 3 weeks ago. The pace of specialty shell egg featuring is also very limited and not focused on any one type. Nutritionally-enhanced is seeing the most ad space this cycle. Feature activity for UEP-defined cage-free shell eggs has not been reported over the past 4 weeks but a few store ads showed up this week at sharply higher average ad price levels from the last test. The price spread on feature between 12-packs of Large caged eggs and UEP cagefree eggs is $4.00, much wider than the last time both types were seen in features. Grocers continue to avoid incentivizing shell egg movement as they work to maintain a consistent supply to their customers in the current environment.
The overall shell egg inventory declined 2% while the national inventory of Large class shell eggs was down just over one percent. Stocks of Large shell eggs in the key Midwest region declined 8.5% as demand once again outpaces supply. The inventory share of Large class shell eggs remains at about 50% share of all shell egg stocks on inventory at the start of the week. Stocks of cage-free eggs drew down 3.5% while stocks of nutritionallyenhanced eggs decreased 12.5%. Stocks of organic shell eggs were down 5%. The breaking stock inventory gained 2% as breakers are running reduced schedules as spot market offerings remain very limited. Total estimated table egg production is about unchanged from last week and from last year to a year-to-year deficit the equivalent of 5.4 million cases in total.
The average wholesale price for breaking stock in the Central States was down $0.01 to $6.33 per dozen on mostly light to moderate demand and light to very light offerings. Supplies are light to moderate and trading is moderate. Breaking schedules are generally reduced and currently running 3% below year ago levels. The volume of eggs processed last week decreased just under one percent and the share of weekly table egg production declined a half percent to 27.5%. Production of whole egg was up nearly 3% while production of egg components continues to decline - whites by about 5.5% and yolk by just over 4%. Dried egg production decreased nearly 10% and production of inedible egg was down 6.5%. Breaking yields without inedible improved slightly to 42.17 pounds per case broken.
Wholesale prices for certified liquid whole eggs are too few to report. The undertone is higher with good demand for light to very light offerings. Trading is moderate to active. Wholesale prices on whole frozen eggs are $0.53 higher at $4.97 with frozen whites not tested again this week and last quoted at $3.50 per pound. The undertone is firm to higher with a full range of demand for light to very light offerings. Supplies are mostly light with moderate to active trading. Prices for whole dried eggs remain too few to report with those for whole dried egg last quoted at $9.60 per pound and those for dried yolk at $7.40 per pound. The undertone is higher with good to very good demand as buyers work to secure product for current and near-term needs. Offerings are very light and supplies are light to very light. Trading is active.
According to NASS, the December monthly volume of frozen eggs in storage declined 7% from November, 38% below the December 2023 level. This is the lowest level of egg products stocks recorded in the last 10 years. Stocks of whole frozen egg decreased 5%, 33% below last year and the share of whole egg stocks gained 1% to a 45% share of total frozen stocks. Stocks of frozen yolk declined 12% but were 61% under last year’s level while stocks of frozen egg whites were down 6%, 44% below year ago levels. Stocks of unclassified eggs declined 9% from last month and 40% from last year. The share of unclassified frozen stocks fell one percent to a 45% share of total frozen stocks.
Source: USDA AMS Livestock & Poultry Program, Livestock, Poultry, and Grain Market News Division
