1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The overall egg market shows a pattern of near - term weakness and long - term strength, but the inventory remains at a high level, and there is still supply pressure. The future production capacity is expected to peak and decline. In the short term, there is an optimistic expectation for the spot price from March to April, but considering the replenishment situation, there may be new supply pressure from May to June, which limits the rebound height of the futures price [3][21]. - The cost of feed raw materials such as soybean meal and corn is rising steadily, and the comprehensive breeding cost is about 3.1 yuan per catty. The breeding profit is around the break - even point [3][32]. - The seasonal consumption is in the off - season, with a phased consumption recovery after the temperature warms up. The inventory pressure in the production area is reduced, while the inventory replenishment in the sales area is completed, and the demand is not strong [26]. - Vegetable and pork prices are putting downward pressure on egg prices [28]. 3. Summary by Relevant Catalogs 3.1 Futures Market Review - Last week, the basis strengthened significantly, and the futures price followed the spot price passively [5]. - The futures price rebounded to a certain extent due to the increase in capital attention, but was still suppressed by the high - level inventory [36]. 3.2 Spot Market Review - The inventory in the production area is low, with a shortage of small eggs, and the sales area has completed inventory replenishment [9]. 3.3 Supply Analysis 3.3.1 New Replenishment - The utilization rate of hatching eggs has increased, the price of chicks is high, and the overall enthusiasm for replenishment is high, which will mainly affect the supply from July to August. The new supply pressure from January to March 2026 is relatively small, but the new supply from May to June is expected to increase [3][10][11]. 3.3.2 Culling - The price of culled chickens has risen, the culling volume is at a low level, the age of chickens has increased, and the culling speed has slowed down. The current available culling volume is about 100 million, and the culling volume in the range of 350 - 450 days is about 220 million. The overall breeding is not profitable, and there is a contradiction between culling and waiting for the Spring Festival for molting [13][19]. 3.3.3 Production Capacity - Whether through normal culling or molting, the future production capacity is expected to peak and decline [21]. 3.4 Demand Analysis - Seasonally, it is the off - season for consumption, but there is a phased consumption recovery after the temperature warms up. The inventory pressure in the production area is reduced, and the temperature is rising, so the producers are active in shipping. The inventory replenishment in the sales area is completed, and the hot and humid weather in the sales area increases the storage difficulty, resulting in weak demand [26]. 3.5 Cost and Profit - The cost of raw materials such as soybean meal and corn continues to strengthen, and the feed cost is about 2.7 yuan per catty, with the comprehensive breeding cost at about 3.1 yuan per catty. The breeding cost has risen rapidly, while the spot price of eggs has increased slightly, and the profit is around the break - even point [3][32]. 3.6 Strategy Suggestions - Short - sell at high positions. - Conduct reverse spread operations in the JD5 - 9 spread range. - Close the 4 - 5/4 - 6 positive spread positions [3].

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - The current contradiction is the co - existence of high supply and seasonal weather factors, leading to low spot prices. However, the market is approaching a cycle and seasonal strength - weakness conversion point, and a stage of spot - futures linked rebound is imminent [3]. - The futures has started a cycle conversion and bottomed out, while the spot is still restricted by weather and short - term supply - demand pressure, but the seasonal peak season is coming [6][13]. - The overall cost is oscillating with a small decline, and the breeding profit has fallen into a deep loss. The negative feedback of production capacity caused by profit loss is gradually taking effect [3][30][31]. - The market competition is intensifying, with bears and bulls having different views. The basis is expected to strengthen, and short - term reverse arbitrage is the main strategy [34][36][39] 3. Summary by Relevant Catalogs Futures Review - Last week, the egg futures showed a strong performance, mainly breaking through and rising, and continued to trade at a premium to the spot. The sentiment brought by the stable and rising spot was greater than the actual support. The futures has started a cycle conversion and bottomed out [6]. Spot Review - Last week, the egg spot continued a strong rebound, with the sales areas driving the production areas to rise. The restocking in sales areas and food factories led to the price rebound. However, the continuous rain in southern sales areas restricted the rebound height of the spot price, and downstream restocking was relatively cautious. But the seasonal peak season is coming, and demand support is about to start, while the energy efficiency of the supply side will further decrease [13]. Supply - **New Capacity**: From June to August 2025, the newly opened production corresponds to the replenishment volume from February to April 2025, which remains at a high level, and the new volume is higher than the historical average [18]. - **Eliminated Capacity**: From June to August 2025, the normal eliminated capacity corresponds to the replenishment volume from October 2023 to January 2024, and the available eliminated capacity is relatively neutral [18]. - **Laying Hens Inventory**: The inventory remains at a high level, the new capacity is increasing steadily, the new replenishment has slowed down, and the available eliminated capacity this month has decreased steadily. The data shows that the backward production capacity has started the active elimination stage, but relatively slowly, and the overall supply pressure still exists [18]. Elimination - The backward production capacity is being removed, but has not entered the acceleration phase. The price of eliminated chickens is 4.51 yuan/jin, down 0.1 yuan/jin, and may be approaching the bottom - rebound period; the elimination volume has continued to rise and is approaching the peak; the elimination age is 502 days, down 2 days, and the downward trend of age is obvious [21]. Other Supply - Related Indicators - **Egg - producing Egg Rate**: It is 90.34%. As the temperature rises, the egg - producing rate continues to decline, but the decline rate this year is relatively slow. In July, high - temperature will cause the energy efficiency to drop by about 4%, and potential positive factors are emerging [23]. - **Seasonality**: It is in the transition period from the off - season to the peak season, and a certain turnaround is expected to occur in mid - June [25]. - **Production Area**: Currently, the production areas are actively selling. With the increasing high temperature, new chickens are constantly starting to lay eggs [25]. - **Consumption Area**: The restocking has ended, the overall demand is average, and the weather factors are suppressing the egg price [25]. - **Substitute Products**: Vegetable prices are about to enter a seasonally strong stage, which will support the egg price; pork prices continue to weaken, and the substitution effect on eggs is not obvious; other meat prices are strengthening [27]. Cost & Profit - **Cost**: Corn prices are running at a high level, and the spot price of soybean meal is falling steadily. The overall cost is oscillating. Currently, the feed cost is about 2.5 yuan/jin, and the comprehensive breeding cost is about 2.8 yuan/jin [30]. - **Profit**: The breeding profit has fallen below the feed cost, and the whole industry has entered a deep - loss period, running at a low level, waiting for a seasonal bottom - rebound. The negative feedback of production capacity caused by profit loss is gradually taking effect, and attention should be paid to the elimination of backward production capacity [31]. Capital and Market Indicators - **Capital**: The capital is at a high level, and the market competition is intensifying. Bears believe that the production capacity is high and there is still room for decline due to seasonal suppression, while bulls believe that the valuation is low and it is time to go long due to the upcoming seasonal shift from weak to strong [34]. - **Basis**: The basis is negative, and the overall market is trading at a premium. The expectation is positive. Currently, the basis is running at a low level, waiting for the strengthening trend of the basis brought by the peak season. The rhythm may slow down, but the trend will not change, and the support brought by the strengthening basis is approaching [36]. - **Spread**: The falling spot price is suppressing the near - month contracts, and short - term reverse arbitrage is the main strategy [39].