Malaysia’s palm oil production will reach 20 million tonnes for the first time.
Malaysia may surpass 20 million tonnes of palm oil in 2025, driven by good weather and efficient harvesting, the MPOB said. Record output and weak exports have lifted stocks to a 6.5-year high of 2.84 million tonnes, possibly hitting 3 million. Despite rising supplies, global edible oil shortages are expected to persist into 2026.
Malaysia’s palm oil production is expected to exceed 20 million tonnes by 2025 for the first time ever, assuming favorable weather and an effective harvest. Reuters reports details of this optimistic forecast , citing data from the Malaysian Palm Oil Board (MBOP).
Record production in Malaysia, the world’s second-largest palm oil exporter, is also expected to boost inventories, which could put pressure on futures, which are already at five-month lows.
Malaysia’s palm oil stocks rose to their highest level in over 6.5 years in November, reaching 2.84 million tonnes, due to declining exports. Despite the anticipated improvement in export demand, the country’s stocks are expected to continue to grow and could reach 3 million tonnes by the end of December.
However, the supply shortage in the global edible vegetable oil market that emerged in 2025 will continue into 2026, experts note.
As a reminder, the area under palm plantations has increased by 11% over the past 20 years and will reach 27.9 million hectares by the end of this year.
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Source : Ukr Agro Consult
