United States-Drop in egg market.

Broiler-type eggs set in commercial hatcheries in 19 selected states fell 9 percent in the latest week from the comparable week a year ago, according to USDA, marking their largest decline in three months.

Commercial hatcheries in the government’s 19-state program set 199 million eggs in incubators during the week ended Jan. 31, 2009.

The decline is the biggest drop since the week of Nov. 8, 2008 and seems well-timed given that demand for chicken appears to be weakening further, according to a J.P. Morgan analyst.

"In order to maintain the supply/demand balance that has led to higher prices and better producer profits, cuts of this magnitude may be necessary," J.P. Morgan analyst Ken Goldman said in a note to investors.

Broiler growers in the program placed 167 million chicks for meat production in the latest week, down 5 percent from the corresponding period a year earlier.

Cumulative placements from Dec. 28, 2008 through Jan. 31, 2009 were 838 million, down 6 percent from a year ago.