It’s hard to say which inflation came first — for chickens or for eggs — but it’s definitely been worse for the hard-shelled reproductive body produced by the domesticated junglefowl.
According to the latest BLS report, egg prices were (unadjusted) 36 per cent higher in March compared to the same period last year, while the cost of a fresh whole chicken was only up 8.9 per cent.
However, month-on-month (and seasonally-adjusted) the price of an egg collapsed 10.9 per cent in March, and the latest National Egg Review from the USDA has revealed the dire state of the market (H/T @riddleofsands):
It’s almost as if eggs were the edible version of an unprofitable SoftBank-backed shitco. The US government agency spells out the fowl dynamics, with California once again ground zero for another crisis.
New York egg prices are steady. California and regional egg prices are 20 cents lower for Jumbo, down 18 to 36 cents for Extra Large, 18 to 44 cents lower for Large, down 16 to 38.5 cents for Medium, and 18 cents lower for Small. The undertone is steady to weak. Offerings remain moderate. Supplies are moderate to heavy. Demand into all channels is light to moderate with some noting improvements. Market activity is slow to moderate. Breaking stock offerings and demand are light to moderate. Light type fowl offerings are moderate to heavy; processing schedules are normal to less than normal.
. . . All liquid egg prices are too few trades to report. The undertone is weak for whole, whites, and yolk. Demand is light to instances moderate with increased interest noted for yolk. Offerings are light to moderate. Market activity continues slow to at times moderate.
. . . Prices of frozen product ranges are lower for whole, steady to lower for whites, steady to higher for sugar yolk, steady for salt yolk. The undertone is in a range of steady to weak. Demand and offerings are light to instances moderate. Supplies are light. Market activity is slow to moderate.
. . . Dried whole egg prices are lower for whole, steady for yolk, and too few to report for albumen. The undertone ranges about steady to mostly weak. Demand is moderate to fairly good for albumen, moderate for whole and light to instances moderate for yolk. Offerings are light to at times moderate. Supplies are usually light to very light. Market activity is slow to moderate with industry closely watching current market conditions.
The USDA is clearly trying to avoid panicking people with its dry bureaucratese language, but make no mistake — the egg bubble has burst, and deflation is here.
We were warned though:
A major Fed rate hike risks deflation
— Elon Musk (@elonmusk) September 9, 2022
Source: Economy - ft.com
