Malaysia’s palm oil production will reach 20 mln tons for the first time

Malaysian palm oil production by 2025 is expected to exceed 20 million tonnes for the first time on record, assuming favorable weather and a successful 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 expected to likely increase inventories, which could put pressure on futures, which are already at a five-month low.

Malaysia’s palm oil inventories rose to their highest level in over 6.5 years in November, reaching 2.84 million tonnes, due to lower exports. Despite the expected improvement in export demand, inventories are expected to continue to rise and could reach 3 million tonnes by the end of December.

However, experts note that the supply shortage in the global edible vegetable oil market that emerged in 2025 will continue into 2026.

As a reminder, the area under palm oil plantations has grown by 11% over the past 20 years and will reach 27.9 million hectares by the end of this year.

Tags: Malaysia, palm oil, crop forecast