Malaysia’s palm oil output likely to surpass 20 mln T for first time in 2025

Malaysia’s crude palm oil production is expected to surpass 20 million metric tons for the first time in 2025, supported by favourable weather, improved labour supply, and higher-yielding new plantations, trade and industry officials told Reuters. The record output means the world’s second-largest producer of the tropical oil is likely to end the year with higher-than-expected stocks, weighing on benchmark Malaysian futures FCPO1!. This year’s output is estimated to be 3.4% higher than last year’s 19.34 million tons and to surpass the previous record of 19.96 million tons set in 2015, according to estimates from a dozen trade and industry officials. Production in November is expected to ease from record October levels, with a further decline likely in December, but output should remain above last year’s levels, said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group. “Even with a drop in November and December, total production is still set to top 20 ...