Malaysian palm oil market to stabilize in 2026 on export growth

December 28, 2025 |

In Ukraine, UkrAgroConsult reported that Malaysia’s palm oil market is expected to stabilize in 2026, underpinned by stronger export growth and easing production, as global demand improves amid more competitive pricing, according to the Malaysian Palm Oil Council (MPOC).

MPOC projects palm oil exports to rise to 16.2 million tons in 2026, while production is forecast to moderate at 19.7 million tons as oil palm trees enter a natural resting phase following a solid performance in 2025. The combination is expected to support a healthier supply-demand balance and gradual stock normalization, according to the report.

In the latest update, MPOC shared that Malaysia’s palm oil production declined 5.3% month-on-month to 1.93 million tons in November, while exports slipped to 1.21 million tons, weighed by softer demand from Sub-Saharan Africa and the European Union (EU).

The weaker export performance pushed palm oil stocks to 2.83 million tons, the highest level since March 2019, the report added.

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Category: Food & Agriculture

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