Eggs: Peak season countdown begins, market activity warms up early.
Egg Market Analysis
Today, egg prices in major producing areas saw slight increases in some regions. The average price in major producing areas was 4.61 yuan/jin, an increase of 0.02 yuan/jin compared to the previous working day. The average price of red eggs was 4.61 yuan/jin, and the average price of pink eggs was 4.62 yuan/jin, a price difference of 0.01 yuan/jin. Egg prices across most regions of the country remained relatively stable today, with some areas experiencing sporadic increases.
Currently, the country is experiencing continuous high temperatures, and the probability of fresh egg storage losses remains high. Farms and wholesalers are actively selling, resulting in slight differences in sales at different stages. Overall circulating inventory has slightly declined.
Coupled with the continued heat stress in laying hens, the egg production rate remains relatively low, leading to a contraction in the supply of fresh eggs in the market, providing significant support from the supply side.
Meanwhile, preparations for Mid-Autumn Festival food processing are gradually starting, leading to a marginal recovery in demand. Short-term market bullish sentiment is beginning to rise, and egg prices may be entering a pre-surge phase ahead of schedule. Continued monitoring of stockpiling and inventory changes is necessary.
Egg Market Prices
Egg Market Forecast
From the supply side, widespread high temperatures globally have caused heat stress in laying hens, leading to a simultaneous decline in feed intake and egg production. This has tightened the supply of new eggs. Furthermore, egg inventory at farms and wholesale markets remains low, exhibiting a "production-as-you-go" trend. Without sufficient inventory buffer, even a slight contraction in supply can easily trigger price increases.
From the demand side, we are currently in the off-season for summer consumption, with school holidays preventing the start of demand for group meals. Approaching August, the Mid-Autumn Festival is expected to boost demand, prompting food companies to stock up in advance, gradually strengthening peak season demand.
In summary, bullish sentiment in the market continues to rise, and sales and inventory turnover at all stages are improving. Stimulated by these positive factors, egg prices may maintain an upward trend in the short term. In the medium to long term, the concentrated stockpiling for the Mid-Autumn Festival and school group meal procurement will both have a disruptive impact on the market. We will continue to monitor stockpiling volume, egg production rates, and inventory changes.
Egg Futures Price Movement
On July 29th, the Dalian Commodity Exchange (DCE) egg futures main contract 2609 opened at 4120, reached a high of 4143, a low of 4056, and settled at 4099, down 36/-0.87%, with a trading volume of 776,101 lots and open interest of 259,060 lots.
Egg Index Analysis
According to data from Lenglianduoduo, the domestic egg spot price index on July 29th was 4.617, an increase of 0.027 from the previous day, representing a rise of 0.588%.
