Eggs: Prices rise across the board! The upward trend continues!
Egg Market Analysis
Today, egg prices in major producing areas showed both stability and increases. The average price in major producing areas was 4.46 yuan/jin, an increase of 0.08 yuan/jin compared to the previous working day. The average price of red eggs was 4.44 yuan/jin, and the average price of pink eggs was 4.65 yuan/jin, a price difference of 0.21 yuan/jin. The national egg market continued its strong upward trend today, with prices rising in both producing and consuming areas.
On the supply side, actual egg production fell short of expectations, resulting in a supply gap in the market. Furthermore, the previous rainy season led to persistently low inventory levels at all stages of the supply chain. Traders and food factories, anticipating the Mid-Autumn Festival and with the price increase confirmed, concentrated their restocking efforts, and even small purchases strongly pushed up prices.
Egg Market Prices
Egg Market Outlook
From the supply side, the current seasonal contraction in egg production, coupled with a decrease in hen inventory and an imbalance in the age structure of chickens, further compressed actual egg production. At the same time, with low inventory levels, any increase in demand will be amplified dramatically.
From the demand side, the third quarter is entering the traditional peak consumption season. Food factories have already started stocking up for the Mid-Autumn Festival, coupled with the anticipated demand for group meals during the back-to-school season at the end of August, which will lead to a sustained increase in demand.
Overall, in the short term, under the dual effects of supply contraction and demand recovery, the central price of eggs is expected to continue to rise.
Egg Futures Trends
On July 8th, the opening price of the main egg futures contract 2608 on the Dalian Commodity Exchange (DCE) was 4710, the highest price was 4726, the lowest price was 4678, and the settlement price was 4701, up 8/0.7%, with a trading volume of 654,117 lots and open interest of 352,085 lots.
Egg Index Analysis
According to data from Lenglianduoduo, the domestic egg spot price index was 4.587 on July 8th, an increase of 0.087 from the previous working day, a rise of 1.933%.
