SunSirs: Egg Price Outlook: Initial Gain Followed by Decline on Sluggish Market

As of December 15, the national average egg price stood at CNY 3.02 per jin, marking a 4.50% increase since early November. Egg supply remains relatively ample, though production of small and medium-sized eggs has decreased, resulting in moderate supply pressure. Downstream demand is lackluster, with high-priced goods still facing sales challenges. Purchasing enthusiasm remains subdued, indicating persistent supply-demand imbalances in the market. This week, egg prices are expected to see a slight rebound before falling again by approximately ¥0.10 per jin, with stabilization likely to prevail in the later period.

Early December Egg Market Sees Sluggish Supply and Demand, Prices Slowly Climb

Early December saw limited supply of newly laid eggs, while culling of older hens remained steady. Supply pressure gradually eased as cooler temperatures improved storage conditions, boosting market participation. However, lingering uncertainty over cold storage capacity and terminal consumption kept the market in a supply-demand tug-of-war throughout the month.

With prices at relatively low levels, market participants held bullish expectations for the future. Increased purchases of low-priced supplies led to decent overall market absorption and a slight market recovery. However, ample supply capped the extent of price increases. Boosted by rising producer prices, downstream purchasing activity saw a modest uptick, resulting in a slight improvement in market demand.

As of December 16, the national average egg price stood at CNY 3.02 per jin, with a monthly average of CNY 3.03 per jin, representing a month-on-month increase of 4.12%. Looking ahead, the festive season effect from the Winter Solstice, Christmas, New Year's Day, and Spring Festival is gradually gaining momentum. With expectations of improved market demand, the egg price center may gradually rise amid fluctuations.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.