Malaysia to cut palm oil exports by 2025
Oil World estimates Malaysia’s December 2025 palm oil exports at 1.32 MMT, slightly lower y/y, with full-year exports down to 15.26 MMT. Inventories rose 7.6% m/m to 3.05 MMT, signaling supply pressure and potential downside for spot prices despite stronger early-January shipments.
According to Oil World (Germany), Malaysian palm oil exports in December 2025 are estimated at 1.32 million tons (1.34 million tons in the same month a year earlier), of which 251 (152) thousand tons were delivered to India, 95 (115) thousand tons to China, 88 (112) thousand tons to EU countries and 80 (73) thousand tons to Turkey.
The total volume of palm oil shipments from Malaysia in 2025 reached 15.26 million tons, compared to 16.9 million tons in 2024. In particular, India imported 2.66 (3.03) million tons, EU countries – 1.03 (1.29) million tons, China – 0.89 (1.39) million tons, Turkey – 746 (905) thousand tons, the Philippines – 723 (687) thousand tons.
Malaysia’s exports of refined and crude palm oil declined last year, primarily to Asian and European countries, while increasing to certain African countries. As a result, Asian countries’ share of Malaysian palm oil exports fell from 63% to 60% over the year.
It is also noted that in the period from January 1 to January 15, exports of Malaysian palm oil increased by 18-19% compared to the corresponding level in the previous month, which is due to significant product reserves accumulated in previous months, as well as increased price competitiveness of Malaysian palm oil on the world market.
Malaysian palm oil inventories increased by 7.56% month-on-month to 3.05 million tonnes, indicating a significant increase in supply pressure and suggesting insufficient market demand or excess production. This negative news could lead to lower spot prices, as inventory buildup typically indicates a supply-demand imbalance and dampens buyer appetite. A rating of -1.5 indicates a significant negative impact, but the inventory build has not yet reached extreme levels and should be assessed in conjunction with subsequent demand data.
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Source : Ukr Agro Consult
