Malaysia's palm oil market is expected to stabilise in 2026 amid stronger export growth and easing production, as global demand improves amid more competitive pricing, according to the Malaysian Palm Oil Council (MPOC). MPOC projects palm oil exports to rise to 16.2 million tonnes in 2026, while production is forecast to moderate at 19.7 million tonnes as oil palm trees enter a natural resting phase following a solid performance in 2025. In the latest update, MPOC shared that Malaysia's palm oil production declined 5.3% month-on-month to 1.93 million tonnes in November, while exports slipped to 1.21 million tonnes. MPOC noted that EU demand eased after confirmation of a 12-month delay in the EUDR, reducing the need for precautionary stockbuilding. This pushed palm oil stocks to 2.83 million tonnes, the highest level since March 2019.

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