Eggs: Ample Supply, So Why Are Egg Prices Relatively Strong?（Oct 27）

Eggs: Ample Supply, So Why Are Egg Prices Relatively Strong?

Egg Market Analysis

Egg Market Price

Egg Market Outlook

Supply Side

After entering autumn, temperatures have declined, and laying rates are recovering from the summer slump, with daily egg output increasing month-on-month. Recently, egg prices have continued to probe upward, and farmers' enthusiasm for culling layers has slightly diminished, with some enterprises adopting a wait-and-see stance on extended rearing.

Demand Side

Demand remains weak on the whole. Food factories and supermarkets have no centralized restocking plans, procurement pace is steady, and downstream buyers are primarily purchasing as needed with no strong initiative to build inventory. The market lacks clear demand-driven catalysts, and short-term trading activity is expected to remain subdued.

Overall Assessment

The seasonal recovery of laying rates, combined with the gradual increase of newly productive hens, has boosted effective egg supply, and supply-side pressure persists. The market is currently in the off-season for consumption, with food factories and supermarkets lacking centralized restocking drivers, limiting demand improvement. Market transactions are primarily based on essential needs. On balance, with no clear drivers on either the supply or demand side, tomorrow's producing-area egg prices are expected to remain stable with minor local adjustments.

Egg Futures Trend

On October 27, the Dalian Commodity Exchange (DCE) egg futures main contract 2612 opened at 3,290, with a high of 3,304, a low of 3,233, and a settlement price of 3,273, down 38 points or 1.15%. Trading volume was 563,938 lots, with open interest at 267,192 lots.

Egg Index Analysis

According to Cold Chain TDD data calculations, on October 27, the domestic egg spot price index was 4.069, up 0.051 compared to the previous working day.