Eggs: Prices have been falling for two weeks! And then what?
Egg Market Analysis
Egg prices fell in major producing areas today. The average price in major producing areas was 4.19 yuan/jin, a decrease of 0.06 yuan/jin compared to the previous working day. The average price of red eggs was 4.17 yuan/jin, and the average price of pink eggs was 4.35 yuan/jin, a price difference of 0.18 yuan/jin. The egg market continued its weak downward trend today, with prices generally falling in both major producing and consuming areas. Demand remained weak, and sales in the terminal market slowed significantly. Coupled with the seasonal off-season of the plum rain season, all sectors were cautious in their purchasing, new production increased, and inventory also increased significantly. Therefore, under the dual pressure of weak seasonal demand and hot and humid weather, egg prices remained weak, and the price center shifted downward.
Egg Market Prices
Egg Market Outlook
From the supply side, short-term supply pressure is gradually accumulating. Egg prices are expected to remain under pressure and weak from the end of June to the beginning of July. In the medium to long term, current high profitability is driving farmers to actively replenish their herds. If the replenishment pace remains unchanged in the second half of the year, new production will surge in the fourth quarter.
From the demand side, there is a lack of positive support for short-term demand. Currently, it is the off-season for consumption, making prices more likely to fall than rise. The Dragon Boat Festival stockpiling has subsided, resulting in a significant drop in purchasing volume, and terminal sales are slow. This weak demand is expected to continue until early July.
Overall, prices are expected to continue their slight correction in the short term.
Egg Futures Trends
On June 26th, the Dalian Commodity Exchange (DCE) egg futures main contract 2608 opened at 4366, reached a high of 4420, a low of 4291, and settled at 4346, down 56/1.28%, with a trading volume of 1,115,992 lots and open interest of 359,094 lots.
Egg Index Analysis
According to data from Lenglianduoduo, the domestic egg spot price index on June 26th was 4.296, a decrease of 0.074 from the previous working day, a drop of 1.693%.
