Panic buying and hoarding supplies is pushing wholesale egg prices in the Midwest to their all-time high. The Des Moines Register says prices for other staples like milk, beef, and even ice cream have gone higher as well.
Joe Kerns is president of an agricultural consulting company in Ames, Iowa, who says the Midwest isn’t short on supplies, it’s abnormally-high demand that’s causing the price jump. Because of the uncertainty surrounding the coronavirus outbreak, consumers in Iowa and across the U.S. are piling way more than the usual amount of groceries in their shopping carts. That unusually-high demand level is driving prices higher. Kerns says it’s not a surprise because as restaurant dining rooms are closed, more people are cooking in their homes.
Some grocers are seeing as much as six times the normal demand for eggs, which is temporarily clearing out shelves. Processor are struggling to fill orders that are coming in at a rapid pace. Stores in Iowa and across the country say they’re seeing increased prices from their suppliers as they keep working to make sure their shelves stay filled with staple products.
Just when you thought the markets couldn’t get anymore uncertain. Always has had the feel the markets should trade…people need to have the opportunity to sell. Under the surface is the global supply system, ag has had issues with ports not being open, people not being able to get food-food reserves of the past seem to have gone away. The feeling could be a strong behavioral change. Smart Money insider buying currently being seen in the KC wheat, MN wheat, bean oil, lumber and live cattle markets. Class IV milk had some limit up action.
ARLINGTON, VA – In light of consumer concern over food-supply disruptions, Jim Mulhern, president and CEO of the National Milk Producers Federation, the largest U.S. organization of dairy farmers, offered the following statement:
“U.S. dairy farmers are stewards of a product that’s harvested around the clock, 365 days a year, and they understand the importance of steady production as well as steady consumption. The U.S. food-supply chain is more than capable of meeting demand, and consumers should be reassured that milk and dairy products will continue to be produced and available in the coming weeks and months.
“Dairy supplies aren’t experiencing production interruptions at this time, and dairy farmers and processors will continue to do what they do best: produce safe, quality products every day for consumers in the U.S. and worldwide. We will vigilantly work with all aspects of the dairy supply chain to ensure these products get to everyone who needs them and that — as has always been true — dairy will remain something consumers can count on.”