Eggs: Time is running out! Prices may continue to fall!
Egg Market Analysis
Egg prices in major producing regions fell today. The average price in major producing areas was 3.66 yuan/jin, a decrease of 0.08 yuan/jin compared to the previous working day. The average price of red eggs was 3.68 yuan/jin, and the average price of pink eggs was 3.53 yuan/jin, with a price difference of 0.15 yuan/jin. Today, spot egg prices continued to show a weak downward trend before the holiday. Prices generally fell in many parts of the country. The main reason is that overall market supply is sufficient while demand is limited. Traders' willingness to purchase has decreased, and pre-holiday stocking by consumers has been largely completed, thus slowing down market sales.
Egg market price
Egg market forecast
From the supply side, overall supply is not expected to change significantly in the short term, and capacity reduction remains slow. At the same time, some farmers and traders are choosing to sell their products before the holiday to mitigate post-holiday risks, further increasing the short-term supply in the market.
From the demand side, this is the main limiting factor. As the Spring Festival approaches, the return of migrant workers to their hometowns is largely complete, and household preparations for the festival are also drawing to a close. Furthermore, a significant reduction in consumption support has occurred due to factory closures and holidays, resulting in a noticeable lack of demand.
Overall, as the Spring Festival approaches, the peak in spot prices before the holiday may have already occurred. Due to generally low market inventories, there is limited room for a significant further decline in egg prices in the short term, but prices are expected to remain weak in the near future.
Egg futures price trends
On February 3rd, the Dalian Commodity Exchange (DCE) egg futures main contract 2603 opened at 2965, reached a high of 2975, a low of 2952, and settled at 2962, down -22 or 0.74%. The trading volume was 137,887 lots, and the open interest was 179,651 lots.
Egg Price Index Analysis
According to data from Lengchain Duoduo, the domestic spot price index for eggs on February 3rd was 3.575, a decrease of 0.073 compared to the previous working day, representing a 2.001% drop.
