Report Title and Information - Report Title: Eggs: Focus on Massive Positions and Capacity Reduction [1] - Author: Yang Ruixia [1] - Date: August 29, 2025 [1] Report Industry Investment Rating - Not provided Core Viewpoints - When the future downward trend ends, attention should be paid to the risk of price reverse fluctuations caused by the departure of massive funds from the egg futures market [2] - If the spot price of eggs does not rebound significantly in September, it is expected that there will be an accelerated culling of old chickens around the Mid - Autumn Festival, and the second half of this year is a critical stage for the industry to accelerate capacity reduction [12] Summary by Directory 1. Massive Increase in Egg Futures Positions - In the recent one - month downward trend, the total positions of egg futures have doubled. On July 28, the total positions were 562,000 lots, and on August 28, they reached 1.13 million lots [2] - During the decline of egg futures, the total positions continuously reached new highs since listing. As of August 28, the egg index contract dropped 13.6% in the past month, and the near - month 2509 contract dropped 20.5% during the same period [2] 2. Asynchrony of Futures and Spot Prices - While the egg futures price has been hitting new lows in the past month, the spot price has not continued to reach new lows. The main - producing area egg price has not broken through the spot price low formed since early July [5] - The downward momentum of futures prices comes from the weak peak season of spot and the high premium on the futures market, and the premium on the futures market has been continuously squeezed as market expectations weaken [5] 3. Four - month Loss in the Industry and Capacity Reduction - Egg - chicken farming has been in a loss phase since May, with four consecutive months of losses. It is the only year since 2014 that egg - chicken farming has suffered losses during the traditional summer peak season [9] - The price of culled chickens has been declining in the past month, and the culling age has also continued to decrease. As of August 28, the culling age was 496 days [12] - For the far - month contracts in the first half of next year, consider deploying long positions at an appropriate time, and for the near - month contracts, focus on the future departure of short - selling funds [12]