PETALING JAYA: Malaysia’s palm oil production in February declined for the fourth consecutive month, down by 18.5% or 293,000 tonnes from January 2026.
The decline to 1.28 million tonnes in February was mainly due to fewer harvesting days due to the shorter month and the Lunar New Year public holiday, according to the Malaysian Palm Oil Council (MPOC).
The council said in a statement that palm oil exports remained robust in February, accounting for 88% of Malaysia’s production and contributing to a lower stock level.
This was despite a 22.5% month-on-month decline to 1.12 million tonnes.
Cumulative exports from January to February increased by 18.7% to 2.58 million tonnes, with India contributing the largest share of the increase.
“Vegetable oil prices moved into an uptrend in March after a prolonged consolidation since mid-2025, supported by rising crude oil prices amid logistical disruptions in the Strait of Hormuz, as well as force majeure declarations by several major oil refineries in the Middle East.
“Among the major vegetable oils, palm oil has been the price leader, rising 10% since the outbreak of the conflict on Feb 27.
“In comparison, rapeseed oil rose 4%, sunflower oil increased 3%, while soybean oil gained only 1% in the global market,” stated MPOC. It is worth noting that the sharp rise in global gasoil prices has improved the competitiveness of biodiesel usage and blending.
Brazil’s biodiesel industry has called for an increase in the blending mandate from B15 to B16, while Indonesia is accelerating road tests for B50 blending to reduce import reliance, although the implementation timeline remains unclear.
India’s palm oil imports recovered strongly in the first two months of 2026, rising by 965,000 tonnes or 149% to 1.6 million tonnes compared with the same period last year.
Although soybean oil from South America was trading at price parity with palm oil in March, India is expected to continue favouring palm oil imports in March and April due to the steep increase in freight costs.
