Dave’s Weekly Market Update – February 4, 2021

Happy Thursday!

The egg market has stalled at this level as supplies are starting to build up. The mediums have dropped some and I would gather that the larger sizes are soon to follow. Here is a little info on the egg market. Weekly market quotes on mediums for next week started their downward trend on Tuesday and continued through today.

We expect softening to move to the other sizes over the next couple of weeks. While the same factors that caused the run-up are still present (more at-home cooking, winter storms, exports to Mexico, Hong Kong, Puerto Rico, South Korea), aggressive retail pricing is backing off and more birds are coming back into production

On Monday of this week, total national shell egg inventories were up 5.9% vs the prior week, about the same as a year ago. When breaking stock is added to the shell egg inventory, totals were up 5.6% vs the prior week, but down 3.2% from one year ago.

Butter has bounced around since last Thursday. It dropped Friday and Monday and jumped Tuesday. The bottom line – we are .01 higher for next week.

There is a weakness in the Block market and strength in the Barrel market.
The spread is under .10 and looking at the past few days I would expect the Barrel to rise to close the gap. Swiss cheese prices dropped as milk costs 2 months ago came down and there is always a lag in that market.

It was a tough week in the Northeast due to the snowstorm and the delays it caused. We thank you for your patience and understanding as we fit 5 days of shipping into 4 for the most part. We all hope you have a safe and relaxing weekend.