First Capital Futures: Short-term market sentiment is bearish, and the spot and futures prices of eggs are moving weaker in tandem

Today, egg futures JD2603 contract fell by over 2%, reaching a low of 2888 yuan per 500kg. From the supply side, the number of laying hens in January remains relatively high, and supply pressure has not fully eased. Earlier egg price increases drove up culling prices, and farmers’ reluctance to sell has intensified, slowing down the culling pace, which limits the short-term supply contraction. On the demand side, the last window for Spring Festival stocking is approaching, and bulk replenishment by food companies and supermarkets has basically ended, likely leading to a demand decline. Coupled with school and factory holidays, egg consumption will enter a seasonal off-peak period, exerting downward pressure on mid-term prices. Conclusion: The continued weakening of futures prices intensifies spot market bearish sentiment, traders accelerate inventory clearance, and futures and spot prices move lower in tandem. The market is advised to remain cautious, avoid chasing short positions unilaterally, and pay attention to the support level of 2880 yuan per 500kg in the short term. (First Capital Futures)