Eggs: Off-Season Lacks Catalysts, Market Remains Stable(Oct 28)

Eggs: Off-Season Lacks Catalysts, Market Remains Stable

Egg Market Analysis

Today, quotes from major egg production regions largely maintained a stable trend, with some brown egg prices declining slightly. The average red egg price was 4.08 yuan/jin, and the average pink egg price was 4.06 yuan/jin, narrowing the red-pink spread to within 0.02 yuan. The average price across major production areas was 4.08 yuan/jin, up 0.11 from the previous trading day. The market is currently in the consumption off-season, with food factories and supermarkets lacking centralized stockpiling momentum. Terminal demand support is limited, and overall trading is primarily driven by just-in-time needs. Overall, with both supply and demand lacking clear catalysts, prices remain stable.

Egg Market Price

Egg Market Outlook

On the supply side, as temperatures decline after autumn, laying rates are recovering from the summer lull, and daily egg output has increased month-on-month. Recently, with egg prices continuing to test upward, farmers' enthusiasm for culling hens has weakened somewhat, and some enterprises are adopting a wait-and-see approach with extended rearing.

On the demand side, the off-season effect persists. Food enterprises' terminal product consumption has declined notably, stockpiling has started later than in previous years, and procurement pacing has slowed markedly. Procurement volumes are more conservative than in previous years, overall stockpiling intensity falls short of expectations, and the demand side's support for egg prices has correspondingly weakened.

Overall, on the supply side, the laying flock inventory is increasing and is unlikely to be substantially reduced in the short term, meaning supply pressure will persist. On the demand side, the off-season pattern continues, with no obvious positive catalysts at the terminal level and limited demand support. In summary, under a loose supply-demand pattern, prices are expected to remain range-bound with limited room for rebound.

Egg Futures Performance

On October 28, the Dalian Commodity Exchange (DCE) egg futures main contract 2612 opened at 3,277, with a high of 3,355, low of 3,237, settlement price of 3,304, up 68/2.08%. Trading volume was 599,062 lots, with open interest of 260,658 lots.

Egg Index Analysis

According to Cold Chain Duoduo data calculations, the domestic egg spot price index on October 28 stood at 4.066, down 0.003 from the previous working day.