Analysis Commodities
Summer Slump in Egg Market Nearing Peak
The egg market has taken a significant step back again. The low point does not seem to have been completely reached yet, but the market is not far from it. Meanwhile, the school holidays in the Netherlands and Germany overlap. Additionally, Brazil has halted its egg exports.
The decline in the egg market is not really slowing down yet. In week 29, the price for 100 free-range eggs size M decreased by 5 cents, in week 30 the price decreased by 15 cents to €11.70 per 100 pieces.
As usual, summer is not friendly to the egg market. During this time of the year, egg consumption is always lower. Partly due to lower demand for consumption eggs, as summer recipes are less suitable for egg use, but also the demand from the industry is lower. In summer, the demand for baked goods is at its lowest. The poultry meat market does not seem to have reached its bottom yet, although the market is not far from it as usual.
Typically, the market's low point is in the middle of summer when summer holidays overlap almost everywhere in Europe. During this period, the number of people on vacation is at its peak. This period started for the Netherlands on July 20 and lasts until August 17. The market's low point is likely to fall around the middle of this period. After that, the market generally moves towards the period after the holidays.
Germany also declining
The price is also declining on the German market. Just like in the Netherlands, the price of eggs has dropped by 20 cents, although it happened more gradually than on the Dutch market. The Weser-Ems quotation has taken two steps of ten cents downwards. This brings the price of 100 eggs size M to €11.10 per 100 pieces.
It is heard on the German market that significantly less is being ordered at packing stations than usual. The explanation in the quotation states that all holidays are also coinciding in Germany. As a result, the German market has entered its weakest phase of the year. Despite significant reductions, the willingness to buy is low. Especially the industry is still adopting a wait-and-see approach in the hope that prices will continue to fall. Analysts expect the situation to turn around at any moment. Additionally, there is a clear exception for XL eggs. Eggs in the highest weight class are still selling well.
Brazil halts egg exports
Finally, Brazil has halted its egg exports. Due to the outbreak of Newcastle disease, the Brazilian Ministry of Agriculture decided to suspend all exports of poultry products. It is difficult to indicate the duration of the situation. The country is monitoring the situation day by day and will decide in collaboration with the exporting countries when measures will be lifted. Brazilian egg exports are relatively limited but were growing rapidly until the outbreak. In the first five months of the year, Brazil exported approximately 12,000 tons of eggs. This is roughly double the exports in 2023. It is quite possible that the disease will disrupt plans and deal significant blows to the country's export ambitions.
