Eggs: Egg price update! Prices rising again in many areas!
Egg Market Analysis
Egg prices in major producing regions rose slightly today. The average price in the main producing areas was 3.92 yuan/jin, an increase of 0.07 yuan/jin compared to the previous working day. The average price for brown eggs was 3.94 yuan/jin, and the average price for white eggs was 3.82 yuan/jin, with a price difference of 0.12 yuan/jin. This continues the recent upward trend. Production capacity is slowly recovering, with new production continuously declining, and inventory levels remaining low. Lower temperatures have also led to a decrease in egg production, and some farmers are holding back on sales, resulting in localized supply shortages. Demand from supermarkets and food processing companies for pre-holiday stocking remains strong, and the return of migrant workers to their hometowns in northern China is further boosting household consumption, all of which are providing strong support for egg prices.
Egg market price
Egg market forecast
From the supply side, although current inventory levels have decreased slightly, and the industry continues to experience low inventory levels, which supports egg prices, the trend of capacity reduction is expected to continue.
From the demand side, current stockpiling for the Spring Festival remains the core driving force behind the price increase. However, this demand from food processing is temporary and is expected to weaken rapidly after the Spring Festival, especially after food processing companies and schools close for holidays in February. Therefore, caution is advised regarding the pace of price increases.
Overall, the current low inventory levels are expected to support a slight increase in egg prices.
Egg futures price trends
On January 27th, the main contract 2603 of egg futures at the Dalian Commodity Exchange (DCE) opened at 3088, reached a high of 3098, a low of 3041, and settled at 3066, down -29 or 0.94%. The trading volume was 242,018 lots, and the open interest was 261,722 lots.
Egg Price Index Analysis
According to data from Lengchain Duoduo, the domestic spot price index for eggs on January 27th was 3.856, an increase of 0.045 compared to the previous working day, representing a rise of 1.181%.
