PALMOILMAGAZINE, KUALA LUMPUR — Malaysia’s palm oil exports strengthened at the close of 2025, even as weaker production and rising inventories reshaped the industry’s supply-demand balance.
Latest data from the Malaysian Palm Oil Board (MPOB) show that Malaysia’s palm oil exports in December 2025 rose 8.52% month-on-month to 1.32 million tonnes, up from 1.21 million tonnes in November.
Despite the export improvement, MPOB’s December industry performance report also highlighted a decline in production alongside a notable build-up in stocks.
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Crude palm oil (CPO) output fell 5.46%, or 105,749 tonnes, to 1.83 million tonnes, from 1.94 million tonnes in the previous month.
Palm kernel production also slipped 1.75% to 434,539 tonnes, compared with 442,266 tonnes in November.
In contrast, several downstream kernel-based products recorded modest gains.
Production of crude palm kernel oil edged up 1.05% to 209,856 tonnes, while palm kernel cake output rose 2.05% to 229,985 tonnes.
Palm Oil Stocks Rise 7.58% to 3.05 Million Tonnes
On the inventory side, MPOB reported that CPO stocks increased 4.52% in December to 1.82 million tonnes, from 1.74 million tonnes a month earlier.
A sharper rise was seen in processed palm oil inventories, which jumped 12.46% to 1.23 million tonnes, from 1.09 million tonnes.
As a result, total Malaysian palm oil stocks climbed 7.58% to 3.05 million tonnes, compared with 2.84 million tonnes in November.
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Derivative Exports Strengthen, Biodiesel Slumps
As reported by Palmoilmagazine.com citing The Edge Malaysia on Tuesday (13/1/2026), MPOB data also showed mixed trends in derivative exports.
Exports of palm kernel oil surged 14.85% to 100,224 tonnes, from 87,265 tonnes previously.
Shipments of palm kernel cake jumped 22.78% to 280,296 tonnes, compared with 228,295 tonnes in November.
Oleochemical exports also posted strong growth, rising 33.49% to 283,261 tonnes, from 212,203 tonnes.
However, biodiesel exports recorded a sharp contraction. MPOB data showed biodiesel shipments plunged 75.14% to just 11,697 tonnes, far below 47,059 tonnes in November.
No CPO Imports, but Combined Imports Increase
MPOB reported zero CPO imports in December 2025. However, combined imports of palm oil and palm kernel oil rose 43.64% to 33,292 tonnes, from 23,176 tonnes in November.
The combination of rising exports, declining production, and expanding inventories underscores a market that remains tight and highly sensitive to shifts in demand, seasonal output cycles, and biodiesel policy developments as the industry enters early 2026. (P2)
