Eggs: Not falling enough! Suspense arises again?
Egg Market Analysis
Today, egg prices in major producing areas were mixed, with some areas experiencing increases. The average price in major producing areas was 4.4 yuan/jin, unchanged from the previous working day. The average price for red eggs was 4.38 yuan/jin, and for pink eggs, it was 4.53 yuan/jin, a price difference of 0.15 yuan/jin. The egg market remained weak today, with the previous upward trend being curbed, but the decline was not as large as expected. Increased rainy weather and the approaching hot and humid plum rain season in many parts of the country have made egg storage more difficult, but mold is not severe, and inventory accumulation is not serious, which has supported egg prices to some extent and prevented a sharp drop.
Egg Market Prices
Egg Market Outlook
From the supply side, the current inventory is expected to remain structurally tight until August. Due to severe losses in 2025 leading to concentrated culling of older hens, and the fact that new production capacity will not be released until August, the structurally tight supply situation is expected to continue until August.
From the demand side, the market is facing seasonal challenges. On the one hand, end-user acceptance of current high egg prices is declining, leading to slower sales. On the other hand, weather conditions will significantly increase the difficulty of egg storage. If sales continue to slow, it may trigger further price corrections.
In summary, with supply and demand dynamics and the pressure of the rainy season at the top, and the support of breeding costs at the bottom, prices are expected to remain stable in the short term.
Egg Futures Trends
On May 20th, the Dalian Commodity Exchange (DCE) egg futures main contract 2607 opened at 3807, reached a high of 3940, a low of 3802, and settled at 3881, up 122/3.20%, with a trading volume of 856,497 lots and open interest of 293,800 lots.
Egg Index Analysis
According to data from Lenglianduoduo, the domestic egg spot price index on May 20th was 4.485, down 0.007 from the previous working day, a decrease of 0.156%.
