Eggs: Egg prices have bottomed out! Is a rebound imminent?
Egg Market Analysis
Egg prices rose in major producing areas today. The average price in major producing areas was 4.13 yuan/jin, an increase of 0.12 yuan/jin compared to the previous working day. The average price of red eggs was 4.12 yuan/jin, and the average price of pink eggs was 4.19 yuan/jin, a price difference of 0.07 yuan/jin. The egg market saw a stabilization and rebound today, with spot prices generally rising in many areas.
On the one hand, egg prices experienced an unexpectedly deep decline in June, and after the emotional bubble cleared, the market had a technical need for correction. On the other hand, current egg prices are approaching the comprehensive cost line for farmers, leading to increased reluctance to sell and higher prices among farmers. Meanwhile, demand for cold storage and restocking by food factories at lower prices is beginning to emerge, providing a floor for prices.
Egg Market Prices
Egg Market Outlook
From the supply side, the number of newly laying hens has increased slightly, but with widespread high temperatures across the country, the egg production rate will experience a seasonal decline, which will offset the supply pressure brought by the new production capacity to some extent.
From the demand side, the market will still be affected by the plum rain season in southern China in early July. However, with the continuous sharp decline in egg prices, some traders have been buying at the bottom, and inventory has been transferred to cold storage and sales areas, leading to improved sales.
Overall, the market is currently experiencing increased anticipation of price increases across all sectors, and a slight rebound is expected in the short term.
Egg Futures Price Movement
On July 1st, the opening price of the main egg futures contract 2608 on the Dalian Commodity Exchange (DCE) was 4498, with a high of 4498, a low of 4429, and a settlement price of 4465, up 21/0.47%, with a trading volume of 849,428 lots and open interest of 363,431 lots.
Egg Index Analysis
According to data from Lenglianduoduo, the domestic egg spot price index on July 1st was 4.169, an increase of 0.201 from the previous working day, a rise of 5.066%.
