Breakfast lovers are clucking about the latest US Department of Agriculture (USDA) data. Leftists in Washington and mainstream media have been clutching their eggshells over soaring prices, blaming President Donald Trump for an issue dating back to 2023. However, much like every other strategy employed by progressive lawmakers these days, the plan is backfiring as the eggflation tragedy fades.
Egg Prices Falling
According to the Bureau of Labor Statistics, egg prices surged more than 10% in February and are up more than 58% over the last 12 months. However, this is a lagging indicator because daily USDA figures suggest that egg prices have crashed over the previous week. After peaking at above $8 per dozen earlier this month, egg costs have tanked more than 40% to below $5.
Egg prices are now at a three-month low and are cheaper than when Trump returned to the White House.
So, what has been happening? Because prices have been so high, and consumers have been cautious about the ongoing bird flu outbreak, the "demand for shell eggs continues to fade into the new month as no significant outbreaks of HPAI [highly pathogenic avian influenza] have been detected in nearly two weeks,” the USDA wrote in a recent weekly update. “This respite has provided an opportunity for production to make progress in reducing recent shell egg shortages.” Suffice it to say that households are changing their breakfast habits and menus.
Industry experts further claim that the Justice Department has started investigating companies for potential antitrust violations. The administration’s $1 billion five-point plan, which includes offering financial assistance to affected farmers and trimming burdensome regulations, has also helped stabilize volatile conditions in the egg market.
For whatever reason, one side of the aisle blames the new administration for not resolving a Biden-era issue.
Pain at the Pump Is Easing?
Crude oil prices have plunged this year, falling 8% to around $66 per barrel on the New York Mercantile Exchange. The factors vary, from accelerating global output to a potential peace agreement in Eastern Europe. Since oil accounts for about half of the cost of gasoline, motorists are beginning to see noticeable relief.
GasBuddy, a travel and navigation app, reported that the nation's average price of gasoline has declined for the third consecutive week to $3.03 per gallon. This is the lowest March level since the onset of the pandemic, says Patrick De Haan, head of petroleum analysis at GasBuddy.
The American Automobile Association's national average is slightly higher: $3.08 per gallon, down nearly 10% from a year ago. Still, gas prices are heading in the right direction – for now.
Refineries could play a key role in the coming months as they switch from wintertime gasoline blends to summertime alternatives. This usually causes either a slight or sizable bump in gas prices. However, because the Organization of the Petroleum Exporting Countries and its allies, OPEC+, are restoring crude production and tariffs weighing on global financial markets, the typical seasonal jump might not be as intense.
It is still a long way to return to the pre-Biden days of $2.39, but it could be a good start.
Mimosas on the House
Who is buying the next round of Mimosas? Whoever it is will find the bill is much lower.
Orange juice futures have crashed nearly 50% this year, sliding below $3 per pound on the ICE Futures US exchange. Last year, orange juice prices reached all-time highs of $5.51 due to persistent citrus greening disease adversely impacting Florida and Brazil. Though the fundamentals did not change, hedge funds became frustrated that prices did not rise as much as anticipated. Therefore, they took the money and ran, liquidating their positions.
Despite the 2024 spike, producers refrained from passing higher costs to consumers. The good news is that this threat will not hang over the heads of orange juice drinkers.
Plummeting egg prices, easing pressure at the gas pump, and declining orange juice costs – are shoppers poised to witness some deflation over the next couple of years? Let’s see what Trumponomics can deliver to the American people.
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