KUALA LUMPUR, Jan. 13 — Malaysia’s crude palm oil (CPO) production rose to a record high in 2025, underscoring resilient output even as prices are expected to start 2026 on a softer footing due to elevated stockpiles, according to research houses.
Maybank Investment Bank said in a note on Tuesday that Malaysia’s CPO production remained surprisingly resilient in December 2025 and hit record production for the year 2025 with 20.28 million tons of output.
According to the research house, CPO prices may start the year slow due to high brought-forward stockpiles.
Meanwhile, Hong Leong Investment Bank said in its note on Tuesday that Malaysia’s palm oil stock level may have peaked in December 2025, as it anticipates a continuation in the seasonal cropping trend and a continued rebound in exports, supported by restocking activities ahead of the Ramadhan festival and the recent widening of palm oil’s price discount against soybean oil.
RHB Investment Bank, on the other hand, said that Malaysia’s palm oil stock levels should start moderating in the months to come, but it will take some time to digest such high levels, as stock levels at major importing countries are currently high and in no dire need of replenishment.
Exports may see a gradual pickup in the run-up to the festive season in the first quarter amid competitive CPO prices, the research house noted. (Namibia Daily News/Xinhua)
