Egg Weekly: Prices continue to rise!

Domestic Egg Market Analysis

1.1 Egg Market Price Analysis

This week, the overall egg market saw a slight upward shift. As of Thursday, the average price of red eggs was 4.41 yuan/jin, and the average price of pink eggs was 4.52 yuan/jin, a price difference of 0.11 yuan/jin, an increase of 0.08 yuan/jin compared to last Thursday. Supported by a tight supply of small-sized eggs, the average price of eggs in major producing areas across the country climbed to a high for the year, breaking through the 4.4 yuan/jin mark.

The market supply side is characterized by low inventory and high culling age, with low inventory levels in both production and distribution links. Rising farming profits have strengthened the reluctance of farmers to sell. However, there is disagreement in the market regarding the medium-term trend. On the one hand, the current tight supply provides short-term support for egg prices; on the other hand, the approaching rainy season may have a potential impact on egg storage and sales. Overall, egg prices remained high this week.

Production Area Market: On Thursday, the average price of eggs in major producing areas was 4.42 yuan/jin, an increase of 0.1 yuan/jin compared to last Thursday.

Sales Market: The average price of eggs in major sales areas this Thursday was 4.41 yuan/jin, an increase of 0.09 yuan/jin compared to last Thursday.

1.2 Egg Market Price Trend Chart

1.3 Comparison of Domestic Egg Regional Market Prices This Week

Analysis of Laying Hen Inventory and Slaughter

2.1 Inventory Analysis

This week, the inventory of laying hens continued its marginal contraction trend. The core reason for the decline in inventory is the realization of the previous capacity transmission. The restocking was sluggish due to losses in the second half of 2025, corresponding to a significant insufficient increase in new laying hens in the first half of 2026. The continued tight supply of small-sized eggs since April is strong evidence of this. At the same time, the current laying hen inventory shows obvious structural characteristics: the proportion of older laying hens is increasing, while the proportion of newly laid reserve capacity is decreasing, resulting in a relatively mild decline in total inventory.

2.2 Slaughter Analysis

This week, the culling of hens in the domestic egg market continued its contraction trend, with farmers' reluctance to sell continuing to dominate the slaughtering pace. Meanwhile, the price of culled hens continued to rise, driven by egg prices. This high price, in turn, suppressed the purchasing intentions of slaughterhouses, further limiting the actual release of slaughter volume. Overall, the delayed culling by farmers this week slowed the pace of slaughter, but it also created potential risks for a concentrated release of production capacity later.

Egg Demand Analysis

This week, the demand for eggs exceeded expectations, becoming a significant supporting factor for egg prices. However, there were also risks on the demand side this week. After a brief period of restocking, traders became more cautious, mainly due to the rainy season in southern regions. The high temperature and humidity will increase the difficulty of storing eggs, but the eggs will not mold due to the dampness. Demand showed some resilience this week, still supporting egg prices.

Egg Market Outlook

From the supply side, the focus will be on farming. Currently, the delayed culling sentiment has resulted in a smaller decrease in egg production than in the number of hens. Once older hens are slaughtered in large numbers later, it will create a double pressure from both new and old production capacity. Although the high temperature has slightly reduced the egg production rate, it is unlikely to reverse the medium-term easing trend. The tightest supply phase is expected to be passing.

From the demand side, terminal demand this week exceeded expectations. While the high temperature and humidity environment did suppress terminal sentiment, the upcoming Dragon Boat Festival restocking period should also be considered. Therefore, demand is expected to continue to support egg prices in the future.

Overall, the egg market is expected to continue its high-level fluctuations next week, with red and pink egg prices potentially showing different trends, adjusting by about 0.15 yuan/jin. The average price in major producing areas is expected to be 4.35-4.5 yuan/jin.