Malaysia: Plantation stocks seen facing pressure in 2026 on softer output

Malaysia’s plantation sector may face softer market conditions next year as crude palm oil output begins to ease from its 2025 peak. According to RHB Research, the moderation in production could create mixed prospects for listed planters. It said lower output usually supports crude palm oil, or CPO, prices but current high inventories are likely to limit any upside. “As of October 2025, crude palm oil (CPO) output hit a 6.5-year high at 2.46 million tonnes. However, after recording an 11% month-on-month increase in October, output is expected to decline from November to December,” it said in a statement. RHB Research expects global demand to cool after major festive seasons conclude. It said most plantation companies are likely to post third-quarter 2025 results that match forecasts due to steady output and firm pricing. “Average CPO prices in Malaysia rose 5% quarter-on-quarter to RM4,280 per tonne, while palm kernel prices increased 2% to RM3,460 per tonne,” it said. Fresh fruit ...