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Commodity Markets

Philippines Studies Millet as Drought-Resilient Feed Alternative Amid Strengthening El Niño

The Philippine Department of Agriculture is reviewing broader use of millet in animal feed rations to reduce the country's dependence on corn as a very strong El Niño, projected to persist into the first half of 2027, raises the risk of drought-related supply shocks. While corn remains the dominant feed grain, any large-scale millet adoption could gradually temper growth in Philippine corn import demand, a development international exporters are beginning to monitor.

The Philippine Department of Agriculture is studying wider use of millet in animal feed rations as a drought-resilient alternative to corn, as a very strong El Niño is projected to strengthen toward the end of 2026 and persist into the first half of 2027, according to a 24 September 2026 report by CMB News.

Corn currently remains the core feed ingredient in the Philippine livestock sector, but the government's review signals a strategic intent to shield feed supply from climate-driven shortfalls. The national weather service PAGASA and regional climate centres project that El Niño will intensify in late 2026, bringing below-normal rainfall and dry spells to key growing regions including parts of Luzon and the Visayas, the report said.

Millet's suitability as an alternative stems from its agronomic characteristics. According to CMB News, millet's lower water requirement and better performance in dry conditions make it an attractive option when rainfall deficits affect traditional corn-growing areas, particularly where water infrastructure is limited.

In the near term, the review is characterised by CMB News as a medium-term market signal rather than an immediate demand shock for corn. Any production shortfall in corn still carries direct cost implications for Philippine feed mills and livestock producers. However, should policy support for feed diversification gain traction, wider millet adoption could gradually reduce the livestock sector's sensitivity to corn supply disruptions and cap longer-term growth in corn imports during recurring drought episodes, the source said.

On international corn markets, CMB News reported a mixed but mostly stable pricing picture as of late September 2026. Ukrainian corn (yellow feed grade, 14.5% maximum moisture) was quoted at EUR 0.17 per kilogram FCA Odesa, down from EUR 0.18 the previous week, while Ukrainian corn (feed grade, 14% maximum moisture, 98% purity) CPT Odesa held sideways at EUR 0.157 per kilogram. German corn (feed grade, 14% moisture) at Drentwede EXW firmed to EUR 0.30 per kilogram from EUR 0.295 the previous week.

CMB News noted that the softening of Black Sea FCA values contrasts with a slightly firmer tone in German EXW quotations, pointing to regionally divergent fundamentals. For Asian buyers including the Philippines, the movement keeps Black Sea origins relatively competitive even as European quotations edge higher.

The report added that the Philippines is emerging as a case study in climate adaptation in feed demand, with international corn exporters watching the country not only as a buyer but also for the longer-term implications of its feed ingredient diversification strategy on regional demand patterns.

Prepared with AI assistance and reviewed by the editorial team.

Sources

Commodity Markets

China's 2026/27 Soybean Crop Seen Stable as Quality Premiums Widen and Harvest Weather Adds Risk

China's 2026/27 soybean output is projected at roughly 20.95 million tons, marginally above last year, but the market is increasingly split between high-protein, food-grade beans commanding firm premiums and ordinary, lower-protein supplies facing harvest-period price pressure. Wet and cool weather in key northeastern provinces around late September is complicating fieldwork and drying logistics, adding quality and timing risk to an otherwise stable volume outlook.

3 min read