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China Millet Market: Tight Farm Supply but Stable Prices as Summer Demand Cools

China Millet Market: Tight Farm Supply but Stable Prices as Summer Demand Cools

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CMB News Editorial
Editorial Desk

China millet prices remain broadly stable as tight farm stocks meet seasonally weak demand. Low restocking interest and normal crop emergence cap volatility.

China’s millet market is currently balanced: upstream grain availability is lower than the last two years, but seasonally weak demand and comfortable mill inventories are keeping spot prices broadly stable with limited restocking interest. Market feedback points to tight remaining farmer stocks and modest volumes of old-crop millet, while new-crop sowing has mostly finished and emergence is generally satisfactory. At the same time, rising temperatures are weighing on retail millet (xiaomi) sales and most processors report that existing raw-material stocks are sufficient for near-term needs. As a result, trading is slow, orders at mills are thin and the consensus among market participants is that millet prices are likely to remain stable in the very short term.

Prices & Market Tone

Industry surveys indicate that around 90% of market participants view today’s millet prices in China as stable, with expectations for a continued sideways pattern in the immediate term. Spot trade is dominated by execution of prior contracts and routine processor procurement, with few signs of aggressive bidding on either side.

Internationally, recent indicative export offers for Chinese hulled yellow millet (FOB Beijing) cluster around EUR 0.72–0.79/kg for conventional and roughly EUR 0.78–0.86/kg for organic quality, implying flat-to-slightly firm values versus earlier in May when converted from prevailing FX rates. Wholesale price assessments for millet in China broadly align with this narrow range, suggesting a steady but not overheated export environment.

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Market Data Table
Schwarzer Pfeffer6.850 €/t+2,3 %
Koriander1.240 €/t−0,8 %
Kreuzkümmel2.100 €/t+1,5 %
Zimt (Cassia)8.900 €/t+0,4 %
Kurkuma3.200 €/t−1,2 %
Kardamom grün18.500 €/t+3,1 %
Ingwer (getr.)1.850 €/t+0,9 %
Chili (getr.)2.750 €/t−0,5 %
Schwarzer Pfeffer6.850 €/t+2,3 %
Koriander1.240 €/t−0,8 %
Kreuzkümmel2.100 €/t+1,5 %
Zimt (Cassia)8.900 €/t+0,4 %
Kurkuma3.200 €/t−1,2 %
Kardamom grün18.500 €/t+3,1 %
Ingwer (getr.)1.850 €/t+0,9 %
Chili (getr.)2.750 €/t−0,5 %
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Supply & Demand Balance

On the supply side, grassroots remaining stocks of 2025 millet are generally assessed at only 10–30% of normal levels, with similarly limited volumes of older grain. Overall market supply is clearly below the same period in the previous two years, reflecting both smaller on-farm reserves and disciplined farmer selling. This underpins the current price floor despite the lacklustre trade.

New-crop planting has been completed in some producing areas and is still ongoing in a minority of regions, while most fields already sown show generally good emergence. There are no widespread reports of weather-related damage at this stage. However, the limited pipeline stocks mean that any later weather shock during the growing season could translate relatively quickly into stronger price reactions than in years with larger carryover.

Demand is firmly in its seasonal low phase. Rising temperatures are reducing household millet (xiaomi) consumption, a typical pattern as consumers shift away from hot cereals in late spring and early summer. Most mills report slow offtake and very thin forward order books, while their current grain inventories can comfortably cover near-term processing needs. This combination of weak spot demand and adequate processor stocks is keeping restocking activity muted and reinforces today’s stable price environment.

Fundamentals & External Context

From a broader coarse-grains perspective, recent international analysis still projects expanding global production for key feed crops, including millet, in 2025/26, which caps upside in export-parity values and supports a relatively calm external backdrop for Chinese millet.

Domestically, the focus in late May is on the main summer harvest (particularly wheat), with official weather guidance indicating predominantly fine conditions across major harvest regions over the next few days, favourable for field work and reducing logistics disruptions. This indirectly supports millet flows as transport and labour are not significantly constrained, even if active buying for millet itself remains subdued.

Weather Outlook for Key Millet Areas (Next 3 Days)

Weather forecasts for North China’s principal summer-grain belt (including parts of Hebei, Henan and Shanxi where millet is also cultivated) point to mainly sunny to partly cloudy conditions with scattered, light showers and seasonally warm temperatures.

Such a pattern is generally favourable for millet fields that have already emerged, supporting early vegetative growth without introducing excessive moisture stress or harvest delays for other crops. No acute short-term weather risks are evident that would justify a sharp, immediate change in price expectations.

Short-Term Market Outlook

Given the current alignment of low but sufficient supply, seasonally weak demand and stable international parity values, the most probable scenario for the coming days is continuation of a narrow, sideways price band. Traders’ and processors’ low replenishment appetite suggests limited spot volatility in the absence of unexpected policy or weather shocks.

In the slightly longer run, attention will shift to crop development milestones and any signs of demand recovery after the summer heat. With carryover stocks already on the low side, the market is likely to be sensitive to news on yields and acreage, but for now fundamentals argue for patience rather than aggressive positioning.

Trading Outlook & Recommendations

  • Mill buyers: Maintain hand-to-mouth or modest forward coverage, as current prices are stable and nearby supply is adequate. Consider incremental procurement only if local spot offers show signs of tightening or if logistics costs rise.
  • Farmers and upstream holders: With on-farm stocks already low and no clear bullish catalyst in the immediate term, a gradual, disciplined sales strategy is advisable rather than heavy one-off selling, preserving some optionality for potential weather-driven support later in the season.
  • Traders/exporters: Focus on margin management rather than outright directional bets. The narrow price range and soft downstream demand favour origin and quality arbitrage, as well as optimizing freight and FX, over speculative stock building.

3‑Day Directional Price Indication (EUR)

  • North China, hulled millet kernels (FOB-equivalent): Expected to trade broadly steady around EUR 0.75–0.82/kg, with minimal day-to-day movement given current balance of supply and demand.
  • North China, organic hulled millet kernels (FOB-equivalent): Likely to remain in a firm but stable band near EUR 0.80–0.88/kg, supported by limited organic availability but constrained by weak seasonal end-user demand.
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