Cal-Maine Foods Scrambled by Low Egg Prices
Investors are walking on eggshells ahead of Cal-Maine Foods (NASDAQ: CALM) earnings report next week. It's expected to give an indication of just how low the egg industry has fallen. With its stock at levels not seen in three years, the fiscal 2017 fourth-quarter financial report will determine whether shares are scrambled further.
A quick trip to the grocery store will tell you why: Eggs are cheap. Really cheap. Although the U.S. Agriculture Dept. says prices have risen a few cents per dozen in recent weeks, their cost is still significantly depressed, with the Bureau of Labor Statistics putting the average grocery store price at $1.33 per dozen in June, the lowest level for the month since 2006 and only a penny higher than the nadir hit last November.
Data source: Bureau of Labor Statistics. Chart by author.
Source: Fool.com
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