Malaysia forecasts decline in palm oil production and growth in exports in 2026

The Malaysian Palm Oil Council (MPOC) forecasts that the country’s palm oil market will stabilize in 2026, driven by stronger export growth and lower production volumes, as demand for the tropical product rises as competitive prices return. MPOC forecasts palm oil exports to rise to 16.2 million tonnes in 2026, while production will decline to 19.7 million tonnes as palms enter a natural dormancy phase following stable growth in 2025. This combination of factors is expected to contribute to a healthier supply and demand balance and a gradual restocking. In its latest report, the MPOC reported that Malaysian palm oil production in November fell 5.3% month-on-month to 1.93 million tonnes, while exports fell to 1.21 million tonnes due to lower demand from sub-Saharan Africa and the European Union. The MPOC notes that EU demand declined following confirmation of a 12-month delay in the adoption of the EU Renewable Energy Regulation, reducing the need for precautionary stockpiles. The ...