Egg prices drop; stocks attract investors ahead of Easter

Egg prices have recently fallen, and it may be a good time to invest in egg producers’ stocks. Wholesale prices for large, white eggs dropped from over $8 to about $4 per dozen in just a few weeks, according to a USDA report on March 14. This decline reflects changing consumer behavior, as high prices have led people to buy fewer eggs. While egg inventory is increasing, it will take some time for producers to recover and rebuild their flocks. The USDA is set to report egg production for February, which was affected by bird flu outbreaks. In January, production was already down by 4%. Despite the challenges, large egg producers like Cal-Maine Foods and Vital Farms have seen their stock prices rise significantly over the past year. Cal-Maine reported a revenue increase of over 80% year-over-year in January, while their net income soared nearly 1200%. Some analysts find Cal-Maine’s stocks appealing, especially as egg prices may continue to fluctuate. Cal-Maine supplies about 20% of the US egg market. Analysts are optimistic about the long-term demand for eggs, especially for pasture-raised options. Vital Farms also saw strong revenue growth recently. However, some experts prefer Cal-Maine due to its more stabilized profit projections. As Easter approaches, experts predict higher egg prices, but consumer demand may remain steady due to holiday traditions. Market analysts suggest that prices may continue to fluctuate, depending on production levels and any potential bird flu outbreaks. The United States Agriculture Secretary recently introduced a plan with a budget of $1 billion to address avian flu issues and stabilize the market.