Market demand hardly optimistic, egg prices start to decline

In mid and late June, the market demand is hardly optimistic, and the supply side support is not strong. Egg prices in Southwest China may continue to fluctuate downward, with a decline of about 0.20 yuan / Jin.

Since June, egg prices across the country have been fluctuating and declining. The demand for Dragon Boat Festival is not strong, the market circulation is slowing down, and egg prices are weak. However, due to the lack of surplus goods in various links, breeding units are reluctant to sell at low prices, and egg prices are lower than expected.

In June, the price of eggs in Southwest China and the main producing areas showed a downward trend. Only at the beginning of the month, the price of eggs in Southwest China rose significantly. The main reason was that the market demand in Guangdong was increased due to the impact of public health events, which drove the price of eggs in Southwest China to rise. Then, due to the decrease of demand, the price of eggs stopped rising and stabilized. Until around the Dragon Boat Festival, the price of eggs began to slide down due to poor demand.

It is difficult to say that the demand is optimistic, and the price of eggs is still on a downward trend.

June is the off-season of traditional demand for eggs. High temperature and high humidity are not conducive to egg storage and prone to quality problems. The demand of schools will gradually decrease. In addition, the low price of pork and other livelihood products will also restrain egg consumption to a certain extent. Therefore, there are many negative factors on the demand side in June, the bearish sentiment in the downstream links is strong, the market is cautious, the market circulation is not smooth, and the egg price still has the risk of falling.

According to the monitoring data, from January to February, the enthusiasm of breeding units in Southwest China was not high, and the growth rate of small size supply in June was limited, but due to poor demand, there was inventory pressure; The sales of large code goods are normal, and there is little inventory pressure, so the price difference between large code and small code is gradually widening. According to the telephone survey, due to the weak demand of the Dragon Boat Festival holiday and the slow down of egg circulation in Southwest China, the stock of chicken farms in Southwest China increased to 2-3 days after the festival, but the overall stock pressure was not big, and the breeding units still resisted low price shipment; In addition, the high feed cost is difficult to reduce, which to a certain extent gives good support to the chicken farm, and the decline speed of egg price slows down.

Generally speaking, the demand in mid and late June is not optimistic, and the supply side support is not strong. The egg price in Southwest China may continue to fluctuate downward. However, due to the support of feed cost and the reluctance of breeding units to sell, the decrease of egg price may be limited, about 0.20 yuan / kg.

Post time: Jun-28-2021