1. Report Industry Investment Rating - No information provided in the report 2. Core Viewpoints of the Report - The spot price of eggs in the national market showed a slight rebound this week. The average price in the main producing areas was 3.03 yuan per catty, a 1.34% increase from last week. However, due to the seasonal off - peak season and insufficient terminal consumption, there is no continuous upward momentum [12][25]. - In February 2026, the national laying - hen inventory was about 1.296 billion, a 0.62% month - on - month increase and a 5.28% year - on - year increase. In March, the total laying - hen inventory will remain high with a slight downward trend, and the supply - side benefits are limited. The spot market still faces great pressure to sell off inventory [12][38]. - The overall replenishment volume in the second half of 2025 was low. The medium - term laying - hen inventory shows a definite downward trend, but the current absolute value is still high. If the old - hen culling rhythm accelerates as expected, the supply - side pressure is expected to be marginally reduced. The cost of feed raw materials is relatively stable, and the current egg price is close to the cost line, which provides bottom support for the egg price [15]. - The main contract has intensified short - term long - short games. After the off - peak season's negative factors are released, investors can try to go long with a light position based on the breeding cost line or buy call options for far - month contracts [15]. 3. Summary According to Relevant Catalogs 3.1 Week - long Viewpoint and Strategy - **Fundamental Viewpoint**: The spot price of eggs rebounded slightly. The laying - hen inventory in February increased, and in March, the inventory will remain high with a slight decline. The medium - term supply - demand expectation has improved. Attention should be paid to the culling of old hens, capacity reduction progress, and demand fulfillment [12]. - **Outlook**: The laying - hen inventory will decline in the medium term. If the culling of old hens accelerates and the number of newly - opened layers is limited, the supply - side pressure will be reduced. The stable feed cost and the egg price close to the cost line provide support for the egg price [15]. - **Strategy**: The main contract has intensified short - term long - short games. After the off - peak season's negative factors are released, investors can try to go long with a light position based on the breeding cost line or buy call options for far - month contracts [15]. 3.2 Spot - Futures Market - **Spot Price**: The national egg spot market rebounded slightly this week. The average price in the main producing areas was 3.03 yuan per catty, a 1.34% increase from last week. Due to the seasonal off - peak season, there is no continuous upward momentum [12][25]. - **Futures Price and Spread**: The report provides relevant charts of the closing price of the main egg futures contract, the basis between spot and futures, and the spreads between different contract months, but no specific analysis of the futures price and spread is provided. 3.3 Capacity - **Laying - Hen Inventory**: In February 2026, the national laying - hen inventory was about 1.296 billion, a 0.62% month - on - month increase and a 5.28% year - on - year increase. The number of newly - opened layers in February was small, and the number of culled old hens decreased during the Spring Festival. The number of newly - opened layers was greater than the number of culled old hens, resulting in a slight increase in the inventory [12][38]. - **Laying - Hen Proportion**: The proportion of main - producing laying hens has reached a new high, indicating that the short - term egg supply will remain abundant, which suppresses the egg price. The proportions of reserve laying hens and hens to be culled are at low levels, indicating that the farmers' willingness to replenish is cautious [41]. - **Replenishment Volume**: In February 2026, the sales volume of commercial - generation chicken seedlings of 15 representative enterprises was 42.22 million, a 7.76% month - on - month increase. In March, the farmers' enthusiasm for replenishment has generally increased, but some farmers are still cautious. It is expected that the chicken - seedling price will be stable and slightly stronger next month, with an average monthly price of 3.40 - 3.50 yuan per chick [45]. - **Culled - Hen Price and Quantity**: This week, the total culling volume of old hens in 19 representative markets in 10 key producing areas was 321,400, a 0.86% month - on - month decrease and an 18.32% year - on - year decrease. The culling sentiment of farmers has declined, and the overall culling volume has decreased slightly [48]. - **Culled - Hen Age**: This week, the average culling age of old hens was 492 days, a 0.20% month - on - month increase and an 8.04% year - on - year decrease. The available cullable hens are limited, and farmers mainly cull old hens with low egg - laying performance [51]. 3.4 Supply Side - The laying - hen inventory in February increased, and in March, the total inventory will remain high with a slight downward trend. The supply - side benefits are limited, and the spot market still faces great pressure to sell off inventory [12][38]. 3.5 Demand Side - **Sales Volume in Sales Areas**: The report provides relevant charts of the sales volume in the main sales areas and the national egg sales volume, but no specific analysis of the sales volume is provided. - **Substitute Prices**: The report provides relevant charts of the prices of substitute products such as white - striped chicken, pork, beef, and mutton, but no specific analysis of the substitute prices is provided. - **Seasonal Demand**: Egg prices show obvious seasonal characteristics. They usually reach the annual low around April, the first - half - year high at the end of May, the annual high from mid - to late September, and then decline and gradually stabilize from November to December [76]. 3.6 Cost and Profit - **Feed Price**: The egg cost is mainly affected by the prices of corn and soybean meal. The egg price, cost, and profit are generally positively correlated [82]. - **Laying - Hen Breeding Cost**: The feed cost accounts for about 80% of the total cost. The feed raw materials such as corn and soybean meal are relatively stable. The current egg price is close to the cost line, which provides bottom support for the egg price. It is expected that the egg feed cost in 2026 will decrease by 1% - 2% year - on - year [86]. - **Laying - Hen Breeding Profit**: This week, the cost per catty of eggs was 3.62 yuan, a 1.69% month - on - month increase and a 0.84% year - on - year increase. The profit was - 0.59 yuan per catty, a 3.51% month - on - month decrease and a 180.95% year - on - year decrease. The breeding cost per hen was 137.27 yuan, a 1.61% month - on - month increase and a 0.07% year - on - year increase. The breeding profit was - 6.92 yuan per hen, a 3.49% month - on - month increase and a 209.49% year - on - year decrease [93].