Core Viewpoint - The egg market is experiencing a continuous decline in prices despite being in the demand peak season, primarily due to supply-demand imbalance and pessimistic market sentiment [1][3]. Supply and Demand Analysis - The current supply of laying hens is at a historical high, with a stock of 1.35557 billion hens as of July 2025, reflecting a 1.19% increase month-on-month and a 6.197% increase year-on-year [4]. - Analysts indicate that the demand for eggs has not picked up as expected, leading to a situation where the peak season is not performing as anticipated [3][4]. - The ongoing low prices have resulted in egg production being below cost for nearly four months, which has dampened the willingness of producers to restock and increased the inclination to cull older hens [5]. Market Sentiment and Future Outlook - Market sentiment remains pessimistic due to oversupply, high inventories, and weak demand from downstream buyers, particularly with the delayed Mid-Autumn Festival affecting purchasing intentions [6]. - Despite the current challenges, there is potential for demand to rebound as the holiday approaches, but expectations for significant price increases are tempered by the high supply levels [6]. - Analysts predict limited upward movement in egg prices due to the ongoing high stock levels and unresolved supply-demand conflicts [6].