Report Industry Investment Rating - The short - term investment rating for the egg industry is "oscillating" [2] Core Viewpoints - This week, the price of culled chickens from sample breeding enterprises decreased slightly, the culling age decreased slightly, the price difference between large and small eggs remained basically the same, and the price of chicks continued to decline from a high level. - Due to the limited time this year when egg prices fell below feed costs, most breeding farms chose to extend the breeding period or molt the hens. After the Tomb - Sweeping Festival, egg supply was tight, but after May Day, with molting hens starting to lay eggs and the arrival of the rainy season in the South, there may be a situation of strong supply and weak demand. - Recently, the inventory pressure in the sales areas has increased. Egg traders mainly purchase based on rigid demand, and the sales in the production areas are slow, but the festival effect still provides short - term support. - The breeding profit has dropped significantly and is lower than the average level of the past four years. Currently, it is near the break - even point. If continuous losses occur, farmers may accelerate the elimination of inefficient production capacity. - The egg basis has decreased slightly this week, and the near - month futures contracts are still slightly at a discount. The current price difference between the near - term and far - term egg futures is at a medium level. From the perspective of positions, the net short position of institutional investors in the main egg futures contract shows an oscillating state. - Based on the analysis of the egg fundamental cycle, the current situation is similar to that in the first half of 2020. Before the production capacity is cleared due to breeding losses, the pattern of weak near - term and strong far - term egg futures is expected to continue. It is recommended to wait and observe for reverse arbitrage opportunities [2] Summary by Directory Price and Volume Analysis - It includes sub - sections on spot prices, egg basis, egg price differences, and futures institutional net positions [3][6][9][12] Supply Analysis - Covers aspects such as laying hen inventory, culling situation, replenishment situation, and the situation of large and small eggs [14][16][19][21] Demand Analysis - Consists of sub - sections on shipping volume and sales volume, inventory, and substitutes [24][27][30] Profit Analysis - Includes breeding profit and egg - feed price ratio [33][36]