In Ukraine, UkrAgroConsult reported that Malaysia’s palm oil sector is expected to strengthen in marketing year 2025/26, supported by improved weather conditions, a larger effective harvested area, and higher early-season fresh fruit bunch (FFB) yields.
The USDA has revised its production outlook upward, with output in the opening months of the season ranking among the highest seen over the past four years, boosting overall supply availability.
Palm oil production in 2025/26 is now estimated at 19.7 million metric tons, above previous projections. The increase is driven by expanded effective harvesting areas and the normalization of plantation operations following weather-related disruptions in the prior season. In late 2025, key oil palm-growing regions largely avoided widespread flooding, helping to limit losses and support steady harvesting activity, the report added.
The report also highlighted that an additional growth factor is the transition of part of the planted area into full maturity. Estates established in earlier years are moving beyond the immature phase, improving yields without a significant expansion in total planted area. At the same time, replanting rates remain below national targets, which could constrain longer-term productivity gains.
Malaysia is expected to maintain its competitive position. Palm oil exports in 2025/26 are forecast to remain stable, supported by higher production and firm demand from Asia and the Middle East, the report added.
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Category: Food & Agriculture
