Due to cost-driven emotional transmission, egg prices opened higher on 2605 but then pulled back.

Egg futures JD2605 main contract opened higher and then fell back, reaching a high of 3517 yuan/ton, up over 3%. Spot prices have recently stabilized after a decline, with the average price in main production areas at 2.95 yuan per jin, down 14.24% year-on-year. The average price in key sales areas is 3.00 yuan per jin, down 13.04% year-on-year. From the supply side, as of February, the laying hen stock was 1.296 billion, an increase of 80 million from January, reaching a high for the same period in history. Since February, farmers have been incurring losses, but the number of old hens is low and culling prices are high, leading to weak willingness to reduce capacity. Short-term supply is sufficient. On the demand side, schools fully reopened in early March, releasing concentrated demand for group meals; factories and catering services are recovering, and food processing companies are increasing restocking. Household consumption remains weak, but the rebound in group meals and processing demand offsets some of the impact, with expectations of gradually improving demand. Conclusion: Currently, the fundamentals show ample supply and weak demand, but cost-driven sentiment and bullish market sentiment are rising. It is recommended to wait for opportunities to short on rallies. (Chuangchuang Research)