Eggs: They say it's a pullback! How long will the drop last?
Egg Market Analysis
Today, egg prices in major producing areas decreased, while some areas remained stable. The average price in major producing areas was 4.83 yuan/jin, a decrease of 0.09 yuan/jin compared to the previous working day. The average price of red eggs was 4.8 yuan/jin, and the average price of pink eggs was 4.99 yuan/jin, a price difference of 0.19 yuan/jin.
The egg market continued its downward trend today. Stockpiling for the Dragon Boat Festival has ended, market sales have slowed, and traders are more cautious in their purchases due to the risks of the rainy season. However, the current price decline is more of a rational correction after the rapid rise before the holiday, rather than a trend reversal. Overall market inventory remains at a very low level, and the high summer temperatures have led to a decrease in egg production, limiting the potential for further price drops.
Egg Market Prices
Egg Market Outlook
From the supply side, the capacity gap is narrowing marginally, while farmers' willingness to sell has increased significantly driven by high profits. However, this is not entirely negative. The previous capacity shortage continues, and high temperatures are affecting egg production, limiting the potential for a significant increase in supply.
From the demand side, the 618 shopping festival slowed the price decline, but with the Dragon Boat Festival stockpiling nearing its end, food processing companies and supermarkets significantly reduced their bulk purchases, leading to a marked weakening of demand in the distribution sector.
Overall, egg prices are expected to continue their downward trend with fluctuations in the short term.
Egg Futures Price Movement
On June 16th, the Dalian Commodity Exchange (DCE) egg futures main contract 2608 opened at 4701, reached a high of 4739, a low of 4675, and settled at 4703, up 35/0.75%, with a trading volume of 692,969 lots and open interest of 399,430 lots.
Egg Index Analysis
According to data from Lenglianduoduo, the domestic egg spot price index on June 16th was 4.933, down 0.071 from the previous working day, a decrease of 1.419%.
