Eggs: Demand Provides Support, Gains Expected（August 21）
Eggs: Demand Provides Support, Gains Expected
Egg Market Analysis
Today, egg prices in major production regions were mostly stable with slight declines. The average price of brown eggs was 5.16 yuan per jin, and the average price of white eggs was 4.98 yuan per jin, with the price differential slightly widening to 0.18 yuan. The average price in major production areas was 5.13 yuan per jin, down 0.02 yuan per jin compared to the previous trading day. The egg market still showed a declining trend today. The pace of price increases had been too rapid, and terminal acceptance capacity failed to keep pace, leading to a noticeable slowdown in sales. However, a short-term pullback does not mean the market is reversing direction. School reopening stockpiling is about to be released next week, and the Mid-Autumn Festival procurement window has not yet closed, so the market remains in a seasonal price increase atmosphere.
Egg Market Price
Egg Market Outlook
From the supply side, newly opened laying hens continue to increase, and small-grade egg supply is constantly growing. The inventory of old hens remains sufficient, and farmers have a strong willingness to cull, but slaughter enterprises are cautious about purchasing due to concerns about future price declines, which restrains the pace of old hen sales.
From the demand side, Mid-Autumn Festival stockpiling is steadily progressing, with food processing enterprises primarily purchasing in batches on an as-needed basis. At the same time, the school reopening stockpiling window will arrive next week. The relayed release of these two demand nodes is expected to provide sustained support for egg prices.
Overall, as egg prices continue to climb, market sentiment is becoming increasingly cautious. The willingness of traders to actively build inventory has noticeably declined, with operational strategies shifting to purchasing as needed and minimizing inventory to avoid high-price risks. However, demand-side support remains strong, with Mid-Autumn Festival stockpiling and the approaching school season driving continued release of rigid demand. Short-term egg prices still have the potential to push higher.
Egg Futures Trends
On August 21, the main contract 2610 of egg futures on the Dalian Commodity Exchange (DCE) opened at 3,885, with a high of 3,902, a low of 3,807, and a settlement price of 3,853, down 14 or 0.36%. Trading volume was 633,595 lots, with open interest of 276,778 lots.
Egg Index Analysis
According to calculations by Lenglianduoduo Data, on August 21, the domestic egg spot price index was 5.034, down 0.024 or 0.474% compared to the previous working day.
