InfoSAWIT, KUALA LUMPUR — Malaysia’s palm oil exports ended 2025 on a stronger footing, but rising inventories signaled continued market pressure. Data from the Malaysian Palm Oil Board (MPOB) showed palm oil exports in December 2025 rose 8.52% to 1.32 million tons, from 1.21 million tons in November.
Despite the export improvement, the report showed a decline in crude palm oil production and a sharp rise in total stockpiles.
CPO Output Drops 5.46%
MPOB reported Malaysian crude palm oil (CPO) production fell 5.46%, or 105,749 tons, to 1.83 million tons in December, compared with 1.94 million tons in the previous month.
Palm kernel output also slipped 1.75% month-on-month to 434,539 tons, down from 442,266 tons in November.
However, several palm kernel by-products posted gains:
Crude palm kernel oil production edged up 1.05% to 209,856 tons
Palm kernel cake output increased 2.05% to 229,985 tons
Total Palm Oil Stocks Rise 7.58%
On inventories, MPOB said CPO stocks rose 4.52% to 1.82 million tons, from 1.74 million tons in November.
Processed palm oil stockpiles jumped 12.46% to 1.23 million tons, from 1.09 million tons.
Combined, total palm oil stocks climbed 7.58% to 3.05 million tons, up from 2.84 million tons the month before.
Downstream Exports Mixed, Biodiesel Falls Sharply
MPOB data showed palm kernel oil exports rose 14.85% to 100,224 tons, while palm kernel cake exports surged 22.78% to 280,296 tons.
Oleochemical exports also strengthened sharply, rising 33.49% to 283,261 tons, compared with 212,203 tons in November.
Biodiesel exports, however, slumped 75.14% to 11,697 tons, from 47,059 tons a month earlier.
Imports: CPO at Zero, Total Imports Higher
MPOB reported zero imports of CPO in December. But combined imports of palm kernel oil and palm oil rose 43.64% to 33,292 tons, compared with 23,176 tons in November.
The combination of rising exports, falling production, and sharply higher inventories underscores how sensitive the market remains going into early 2026—especially with seasonal demand and biodiesel policy developments across the region in focus. (T2)
