Experts comment on the problem of falling egg prices: the "futures and egg market" is the driving force behind the jump in egg prices, while the trend of egg prices in the later period depends on how traders operate and has nothing to do with market sales. Experts said that on June 13, the average wholesale price of eggs in Xinfadi market was 2.44 yuan/kg, and on June 23, it was 3.54 yuan/kg. During the period of 10, the price rose by 45.08%, faster than people often say.
He also said that since the previous sharp price increase was a "disaster" caused by futures, there was no room for sharp price increase from the perspective of market supply. As a result, prices fell rapidly early last week and stabilized later this week. However, this wave of sharp price increases has caused serious damage to the laying hen breeding industry. During the period of sharp price increase, the production capacity reduction of laying hens was completely stagnant; The enthusiasm for new chicken replenishment rekindled, and the order for chick hatching was fully booked in just a few days, and some orders were even placed two to three months later.
In addition, he also said that what the wholesale market needs is that prices remain relatively stable, and supply capacity and demand maintain a dynamic balance, or a basic balance, which is the need to protect people's livelihood. However, if futures are stable and inactive, the futures market will be lifeless. Only jumping up and down or fluctuating greatly can create speculative opportunities for traders or buyers and sellers, which is the need of capital speculation. Judging from the performance of egg futures in recent three years, its interference and damage to the smooth operation of egg production are gradually increasing.