Egg: Bottom-Fishing Sentiment Rises, Egg Prices Stabilize with Upward Trend(Oct 23)

Egg: Bottom-Fishing Sentiment Rises, Egg Prices Stabilize with Upward Trend

Egg Market Analysis

Today, egg prices in main production areas showed a slight upward trend. The average price of red eggs was 3.87 yuan/jin, and the average price of pink eggs was 3.93 yuan/jin, with the price spread between red and pink eggs stable at 0.06. The average price in main production areas was 3.87 yuan/jin, up 0.03 from the previous trading day. As egg prices bottomed out periodically, some traders’ willingness to stockpile at the bottom increased, with more entering the market for procurement. Market shipment conditions improved, and the pace of goods movement accelerated compared to the previous period. Today, egg prices showed a pattern of stability with some increases, and market sentiment warmed slightly.

Egg Market Price:

Egg Market Outlook

Supply Side

After autumn, temperatures drop, and laying hen production rates recover from the summer lull, with daily egg output increasing month-on-month. Egg prices continue to decline, further compressing farming profits, and farms’ willingness to cull old hens has increased.

Demand Side

Current demand remains weak. Food factories and supermarkets have no centralized restocking plans, procurement pace is flat, and the downstream overall adopts a buy-as-needed approach with limited proactive stocking willingness.

Overall Outlook

Overall, the rapid price correction combined with seasonal off-season pressure means market wait-and-see sentiment prevails. The trading sector mainly sells at market prices with limited proactive stockpiling willingness. However, as egg prices fall to low levels, the trading sector holds certain bottom-fishing expectations, with increased willingness to buy at low prices, providing some support for spot prices. The short-term downside for egg prices may be relatively limited.

Egg Futures Trend

On October 23, the Dalian Commodity Exchange (DCE) egg futures main contract 2612 opened at 3,240, with a high of 3,304, low of 3,211, settlement price of 3,262, up 97/3.03%. Trading volume was 584,231 lots, with open interest of 277,840 lots.

Egg Index Analysis

According to Cold Chain TDD data calculations, the domestic egg spot price index on October 23 was 3.912, up 0.026 compared to the previous working day.