Eggs: Egg prices are changing! Is it about to drop?
Egg Market Analysis
Egg prices fell in major producing areas today. The average price in major producing areas was 4.48 yuan/jin, a decrease of 0.28 yuan/jin compared to the previous working day. The average price of red eggs was 4.45 yuan/jin, and the average price of pink eggs was 4.93 yuan/jin, a price difference of 0.48 yuan/jin. The egg market continued its post-holiday downward trend, with significant price reductions in many areas.
The previous period of tight supply, coupled with the hot market driven by stockpiling for the Dragon Boat Festival, is now entering a turning point after the holiday. Terminal sales have slowed, the rainy season has constrained stockpiling demand, and the gradual entry of young hens added in the spring into egg-laying flocks has slightly increased inventory in producing areas, easing the tight supply situation and collectively suppressing egg prices.
Egg Market Prices
Egg Market Outlook
From the supply side, it should be noted that the enthusiasm for restocking has rebounded significantly this year, the number of newly laying hens has begun to increase, and the culling of older hens has slowed down after the improvement in farming profitability. The capacity gap is gradually being closed, and there is a risk of delayed supply pressure.
From the demand side, after the Dragon Boat Festival, food companies finished stocking up, and schools gradually closed for holidays, leading to a significant cooling in centralized procurement demand. This, coupled with the increased difficulty of egg storage due to the rainy season in southern China and slower terminal sales, makes a seasonal decline in short-term demand highly probable.
Overall, prices continue to face pressure for a correction from their high levels.
Egg Futures Price Movement
On June 22, the Dalian Commodity Exchange (DCE) egg futures main contract 2608 opened at 4405, reached a high of 4475, a low of 4328, and settled at 4392, down 223/4.88%, with a trading volume of 1,228,001 lots and open interest of 360,177 lots.
Egg Index Analysis
According to data from Lenglianduoduo, the domestic egg spot price index on June 22 was 4.646, a decrease of 0.224 from the previous working day, a drop of 4.600%.
