Core Viewpoint - The domestic futures market for agricultural products shows mixed performance, with egg futures experiencing an upward trend, while supply and demand dynamics indicate a complex market environment [1] Supply Analysis - As of September, the inventory of laying hens remains at historically high levels. However, there is a month-on-month decline in October's laying hen inventory due to the culling rhythm and previous chick stocking conditions, although year-on-year levels remain elevated [1] Demand Analysis - Terminal demand is described as average, with traders primarily purchasing eggs as needed. Prices in the production areas are stable, while procurement costs in sales areas are also stable [1] Market Outlook - The continuous losses in the breeding sector are leading to reduced restocking enthusiasm and an increase in the culling of older hens, resulting in a slight decline in laying hen inventory. Despite a slight improvement in market sentiment, high inventory levels and the absence of excessive culling of older hens are expected to limit price increases. Recent trends show a low-level rebound in egg futures prices, but high production capacity remains a significant concern that may restrict further price increases [1]

Group 1 - The domestic futures market for agricultural products shows a predominantly positive trend, with egg futures experiencing a price increase of 1.71%, reaching a high of 3181.00 yuan per 500 kg [1] - The current egg market is characterized by a stable consumption at the terminal level, with traders purchasing based on demand, leading to stable prices in various markets [2] - There is no clear indication of excess capacity being eliminated, and the future price trends of eggs will depend on changes in the willingness to restock and cull in the breeding sector [2] Group 2 - The medium to long-term egg production capacity remains relatively loose, indicating a need for further capacity reduction in the industry [2] - Recent price trends post-holidays confirm previous bearish outlooks, with an increase in the culling of hens, suggesting a potential for short-term participation in positive spreads [2] - Current national egg prices are stabilizing, influenced by weather conditions that facilitate storage, while both the breeding and trading sectors exhibit a cautious stance, leading to a likely short-term oscillation in prices [2]