European forward contracts resume amid rising prices while US processing activity hits 2025 highs despite stable shell egg conditions

July 10, 2025 – Global egg markets are experiencing an unexpected period of stability as summer unfolds, but beneath the surface calm lies mounting urgency for powder procurement strategies. European shell egg prices resist sharp summer declines while US processing activity reaches new yearly highs, creating critical decision points for industry buyers who delayed purchases expecting cheaper summer pricing.

European markets defy seasonal price expectations

European egg markets continue to surprise analysts with their resistance to traditional summer price corrections, maintaining stable pricing despite holiday season demand patterns. The complete absence of new avian flu cases has provided crucial market confidence, with migration patterns now fully concluded and biosecurity concerns significantly diminished.

Market dynamics reveal a cautious industry approach, with the anticipated sharp summer price drop failing to materialize across most segments. This stability comes as forward contracting activity slowly resumes after months of delayed negotiations, though new contract prices are reflecting significantly higher expectations for the back half of 2025.

Powder procurement urgency intensifies

A critical development reshaping market dynamics centers on egg powder supply strategies as drying plants begin securing volumes for peak seasonal demand. Many buyers who waited for cheaper summer eggs are now facing a potential aggressive buying wave as procurement windows narrow.

Powder price dynamics are diverging significantly across segments, with yolk powder facing particular pressure due to limited availability and strong demand. Forward pricing signals suggest bullish sentiment for Q4, with contract prices already exceeding current spot levels by substantial margins.

Industry sources indicate that food industry buyers who haven’t secured forward contracts face increasingly challenging procurement decisions, with the next few weeks proving pivotal for supply security.

US markets show processing momentum despite stability

American egg markets present encouraging processing activity despite stable shell egg conditions and successful holiday promotional campaigns. Processing volume has reached the highest levels of 2025, supported by strategic import utilization and continued flock rebuilding efforts.

Cage-free layer population growth continues its structural shift, with nearly 1.5 million birds added and year-over-year increases supporting specialty segment availability. Meanwhile, retail promotional activity ahead of Independence Day successfully stimulated consumer interest and drove inventory drawdowns.

Key factors shaping market direction

Several critical elements are influencing current market dynamics:

Disease Risk Relief: The completion of spring migration and absence of commercial flock outbreaks provide stability until autumn migration risks emerge.

Processing Activity Surge: Both regions show increased processing engagement, with strategic import utilization supporting higher activity levels.

Procurement Timeline Pressure: Delayed purchasing decisions are creating time-sensitive opportunities and risks for industry buyers.

Structural Market Shifts: Continued growth in specialty segments and evolving consumer demand patterns are reshaping supply dynamics.

Market outlook: calm before autumn challenges

Industry analysts anticipate continued near-term stability through July, but warn of mounting challenges as autumn approaches. The convergence of stable disease conditions, improving processing activity, and delayed procurement decisions creates a unique market environment with significant strategic implications.

Critical timing decisions around forward contracting and inventory positioning are expected to intensify, particularly as autumn migration season approaches and traditional seasonal price patterns begin to assert themselves heading into Q4.

Access the full week 28 Egg market analysis on the Vesper platform here: https://app.vespertool.com/market-analysis/2089