Eggs: Egg prices ease! A pullback from high levels!
Egg Market Analysis
Today, egg prices in major producing areas showed mixed trends, with some remaining stable and others declining. The average price in major producing areas was 4.4 yuan/jin, a decrease of 0.06 yuan/jin compared to the previous working day. The average price of red eggs was 4.38 yuan/jin, and the average price of pink eggs was 4.54 yuan/jin, a price difference of 0.16 yuan/jin. The egg market was generally weak today. After egg prices rose to a high level, terminal acceptance declined, sales slowed, and demand slightly decreased. In addition, high temperature and humidity increased storage difficulties, market sentiment became cautious, and inventory increased slightly, leading to a significant increase in the risk of price declines. Egg prices in some areas have already begun to fall slightly.
Egg Market Prices
Egg Market Outlook
From the supply side, there is a serious problem of culling older hens. However, as the chicks replenished in March and April gradually begin laying eggs, the number of newly laying hens is steadily increasing, and the previous tight supply situation is expected to gradually ease.
From the demand side, however, the greater pressure comes from the weather. Southern China has entered the plum rain season, and the high temperatures and humidity not only exacerbate the difficulties of egg storage and transportation but also force downstream buyers to maintain a low-inventory, fast-turnover strategy to mitigate quality risks, resulting in a lack of willingness to hoard.
In summary, under the combined effect of increasing supply and the negative impact of the plum rain season, the risk of a decline in egg prices from their high levels and subsequent fluctuations is significantly increasing.
Egg Futures Price Trends
On May 19th, the Dalian Commodity Exchange (DCE) egg futures main contract 2607 opened at 3820, reached a high of 3844, a low of 3783, and settled at 3809, up 33/0.88%, with a trading volume of 587,343 lots and open interest of 263,347 lots.
Egg Index Analysis
According to data from Lenglianduoduo, the domestic egg spot price index on May 19th was 4.492, down 0.055 from the previous working day, a decrease of 1.210%.
