1. Price Trend

According to data from SunSirs, the egg price was 7.76 RMB / kg early this week, and the egg price was 7.67 RMB / kg this weekend, a drop of 1.16%.

2. Market Analysis

Product: Egg price fell due to the gradual release of a lot of laying hens ’capacity to fill the market in the middle of the year. At the same time, the price of scouring chickens has decreased, and the kinetic energy of capacity reduction has weakened. Large and medium-sized eggs account for a large proportion of eggs. Most domestic laying hens are at the peak of egg production. Inventories in multiple real estate sales areas are backlogged, and the market for eggs is slow.

Second, the demand has weakened recently, and the stocking of food factories has basically ended. While the demand for New Year's Day and the Spring Festival has been weak, the price of hogs has stabilized after the fall. The demand for replacement eggs has decreased, and the overall oversupply has plunged egg prices.

Industry chain: In 2019, the number of domestic chicks to be filled is at a high level in history. A large number of supplements will gradually start production next year to release capacity. From the demand side, egg demand enters the seasonal off-season after the Spring Festival. And the loose supply and demand situation will lead to the current situation. At present, the market has expected performance, and it is expected that futures will continue to be weak.

3. Market Forecasting

New Year's Day and the Spring Festival are approaching. The start of the stockpile is expected to form a support. The egg adjustment space will continue to be limited, and there is still a rebound expectation in the medium term.

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