Eggs: The Secret Revealed! Are Egg Prices About to Rebound?

Egg Market Analysis

Today, egg prices in major producing areas remained stable with slight increases. The average price in major producing areas was 2.91 yuan/jin, an increase of 0.01 yuan/jin compared to yesterday. The average price of red eggs was 2.89 yuan/jin, and the average price of pink eggs was 3.01 yuan/jin, a price difference of 0.12 yuan/jin. The domestic egg market saw a generally stable but narrowly fluctuating trend today, with moderate sales. Currently, the number of laying hens is generally stable, resulting in ample egg supply. While end-consumer demand is weak, the approaching school season and increased demand from school canteens and corporate catering are providing short-term support to the market, resulting in a slight balance between supply and demand and alleviating downward pressure on prices to some extent.

Egg market price

Egg Market Forecast

From the supply side, while current egg inventory is stable and sufficient, based on previous restocking data, the number of culled hens in February is expected to exceed the number of newly laying hens. Therefore, supply pressure may gradually ease, but the speed of capacity reduction still needs to be observed.

From the demand side, we are currently in the traditional off-season after the holidays, and overall market sales are generally weak. However, with businesses resuming operations after the Lantern Festival and schools gradually reopening, the rigid restocking demand from canteens and catering services is gradually being released, providing short-term support to the market.

In summary, egg prices are expected to fluctuate in the short term, with limited upside and downside potential. Looking at the longer term, the turning point for egg prices is expected to appear around the Qingming Festival. As the effects of capacity reduction gradually materialize and seasonal demand recovers, egg prices are expected to see a moderate upward recovery.

Egg Futures Price Movement

On February 25th, the Dalian Commodity Exchange (DCE) egg futures main contract 2604 opened at 3255, reached a high of 3276, a low of 3244, and settled at 3261, up 8% (0.25%). Trading volume was 132,562 lots, and open interest was 176,706 lots.

Egg Index Analysis

According to data from Lenglianduoduo, the domestic egg spot price index on February 25th was 2.974, an increase of 0.021 (0.711%) compared to the previous working day.