Eggs: Ample Supply, Yet Why Are Egg Prices Firm?(Oct 26)

Eggs: Ample Supply, Yet Why Are Egg Prices Firm?

Egg Market Analysis

Egg Market Price

Egg Market Outlook

Supply Side:

After autumn begins, temperatures decline, and laying rates recover from the summer slowdown. Daily egg output has increased month-over-month. As egg prices continue to decline, farming profits are further compressed, and farms' willingness to sell old hens has increased.

Demand Side:

Demand remains weak. Food factories and supermarkets have no centralized restocking plans, and procurement pace is steady. Downstream buyers primarily purchase as needed, with weak proactive stocking willingness. The market lacks obvious demand-side positive drivers, and short-term trading may remain subdued.

Overall Summary:

Currently, the inventory of laying hens remains at a relatively high level. Combined with the seasonal recovery of laying rates driven by declining temperatures, effective egg supply has increased, and supply pressure persists, which may cap the upside of egg prices. However, shipments in some regions have improved slightly, and market sentiment has warmed somewhat. It is expected that tomorrow's market will show clear regional divergence, with egg prices presenting a mixed pattern of stable and rising trends.

Egg Futures Trend

On October 26, the Dalian Commodity Exchange (DCE) egg futures main contract 2612 opened at 3,333, with a high of 3,361, a low of 3,267, and a settlement price of 3,314, up 43 / 1.32%. Trading volume was 663,533 lots, and open interest was 280,942 lots.

Egg Index Analysis

According to calculations by Cold Chain Doodoo, on October 26, the domestic egg spot price index was 4.018, up 0.106 compared to the previous working day.