Reduced growth in palm oil production in Malaysia contributes to rising prices
Data from the Malaysian Palm Oil Board (MPOB) shows that Malaysian palm oil production increased by just 3.2% from November 1 to 20, compared to the previous month’s 7%-10% growth, significantly slowing the pace of year-on-year production growth and leading to a recovery in palm oil prices, according to SunSirs, a Chinese national commodity market research portal.
The data was significantly below market expectations, and the slower pace of supply growth eased concerns about a supply glut and contributed to a price reversal.
Earlier, Malaysian palm oil inventories reached a record 2.46 million tonnes in October, the largest since April 2019 and 31% higher than last October’s figures.
According to OleoScope, the FOB Malaysia palm oil price for November delivery on 26/11/2025 was $1,004.95/t, up $2.49/t from the previous price on 25/11/2025 of $1,002.46/t.
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