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China - Egg futures "soar" due constant demand and low layer population - April 22, 2016

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  • China - Egg futures "soar" due constant demand and low layer population - April 22, 2016

    Apparently there is a problem with the supply of layer chickens which is helping to drive egg prices higher.

    Egg futures soar outlook kept risk-adjusted

    At 08:13 on April 22, 2016 China Securities Journal - Zhongzheng Wang 4Weibomicro-channelspaceShareAdd favorite

      □ reporter Ma Shuang
      After a brief adjustment, egg futures Zaidufali week, the main 1609 contract yesterday, a strong limit, to close late in 4301 yuan / 500 kg, up 204 yuan or 4.98%.Insiders said the increase in egg substitute demand, supply less to the period, farmers Bulan enthusiasm and enhance long funds futures disk enthusiastic resonance and other factors, to promote the continuous rise in the price of eggs. Looking ahead, as the traditional off-season egg market (April to June) is coming, do not rule out the possibility of price correction, July, August, is expected to return to the rising cycle.
      Since last Monday, egg futures 1609 contract appears to accelerate upward, and continuous breakthrough 3900 yuan / 500 kg, 4,000 yuan / 500 kg, 4100 yuan / 500 kg three-bit integer, driven by the 1609 contract, 1701 contract also occurred upstream, 1705 pre-contract decline also appears to ease.
      Mailyard( 19.910 , -0.41 , -2.02% ) futures agricultural products( 12.34 , 0.16 ,1.31% ) analyst Zhang Cuiping said the recent egg futures appear strong trend mainly helped by multi-factors: First, the pork and vegetables egg prices high so that the increase in the consumption of the alternative; Second, this year, the United States and France affected by avian flu sealed off, even if there is another Spanish progenitor chicken imports, nor on the amount and to the period, plus the experience of small farmers eliminated, the current domestic parent chicken population is relatively low, the average utilization rate of eggs society 95%; Third, corn and other feed ingredients run low, so farmers farming profitable, increased longevity, the current profitability is still 0.7 yuan / kg -0.8 yuan / between pounds, boost the enthusiasm of farmers Bulan, chicks reservation to June - July; Fourth, the more prominent recent one factor - gold sentiment, evident in the current agricultural futures market bulls atmosphere at high enthusiasm.
      Spot, the national egg prices steady rise. Chivas monitoring data show that 20 provinces egg prices nationwide average price of 3.23 yuan / kg, up 0.01 yuan / kg.Shandong rose sharply, the average price rose to 3.26 yuan / kg, up 0.05 yuan / kg.Main Sale average price of 3.47 yuan / kg, up 0.02 yuan / kg, including Guangdong, Shanghai, Tianjin rise, Beijing, Fujian, Zhejiang and more stable; the main producing areas the average price of 3.23 yuan / kg, up 0.02 yuan / kg.
      According to Chivas data on egg trade situation monitoring shows, April 20 egg prices steady adjustment. Receipt, the current inventory is still large farmers, most areas receipt relatively easy. Take the goods, the "May Day" stocking has boosted demand for eggs, but the effect is limited or, in most areas reflect Pianman take the goods, compared to the previous day accelerated. South Africa which is slow to take the goods, Northwest Territories take the goods faster. Stock traders, most of regional stock traders reacted less than the previous day, including the Northeast, the Southwest less inventory.
      "National Egg steady bullish traders, including the Northeast, South Africa bullish expectations strong. Egg trade situation is still vulnerable to run, the price of eggs is expected to limited short-term rebound, investors will remain vulnerable to adjust." Chivas eggs data research manager Yang Xiaolei .
      Looking ahead, Zhang Cuiping think, from April to June in the egg market, the traditional off-season, perhaps this year than in previous years performance significantly, does not rule out a correction may be the price of eggs. July and August are expected to return to rising cycle. In addition, in 2016 a quarter of layer breeding stock is still at a relatively low position, the extension of the 1701 contract Bulan pressure was significantly greater than 1609 contracts. Pig herds and low and high prices for chicken meat and egg prices continue to support the formation. Therefore, the expected 1609 contract is expected to continue strong in 1701 contract. The strategy can be considered in September every callback lows more than a single operation, supplemented in January more than a single high empty single hedge risk in September phased pullback brought.

    Editor: Xu filial piety as SF185