Core Viewpoint - The recent rebound in egg prices is driven by factors such as oversold market conditions, seasonal stocking demand, and the exit of short-sellers, despite ongoing supply pressures from the egg-laying hen industry [1][2][3] Market Performance - As of September 5, the main egg futures contract closed at 2964 yuan per 500 kg, reflecting a nearly 2% increase from the low point on September 2 [1][2] - The average price of eggs in China's agricultural wholesale market was 7.73 yuan per kg on September 5, up 1.84% from 7.59 yuan per kg on September 2 [2] Supply and Demand Dynamics - The egg market is experiencing a supply-demand tug-of-war, with seasonal demand typically peaking in the third quarter, but this year has seen a lack of price increase during the traditional peak season [3][4] - The number of old hens being culled is expected to increase in September, as many producers plan to eliminate older hens ahead of the Mid-Autumn Festival [4][7] Profitability and Production Trends - The prolonged low prices of eggs have led to significant losses for egg producers, with losses nearing 0.30 yuan per kg during July and August [6] - The industry is witnessing a shift towards selective culling of hens due to poor profitability, with expectations that the overall production capacity will gradually decrease [6][7] Future Outlook - There is a potential for slight price increases in September due to pre-holiday stocking by food manufacturers and increased demand from school cafeterias [7] - However, the overall rebound in egg prices may be limited due to high production capacity, with average prices expected to remain below historical levels, fluctuating between 3.1 yuan and 3.2 yuan per jin [7]