Glacier FarmMedia — Stronger than expected yields in the early going saw Malaysia’s 2025/26 palm oil production get a good start, said the United States Department of Agriculture attaché in Kuala Lumpur.
Why it matters: Malaysian palm oil prices influence North American canola prices.
In the attaché’s report released on Jan. 6, they placed total output for the current marketing year at 19.70 million tonnes, an increase from the 19.38 million tonnes produced in 2024/25. Another reason for the uptick this year were the much better weather conditions compared to the storms suffered in 2024/25.
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The area harvested was little changed in 2025/26, at 5.15 million hectares, but yields improved to 3.83 tonnes per hectare from 3.77 the year before, said the Kuala Lumpur desk.
Total supply
With a total supply of 22.56 million tonnes, Malaysia is projected to export about 16.20 million, up from 15.59 million in 2024/25, the attaché wrote. They noted that Malaysia is in a good position to maintain or improve its palm oil exports as Indonesia moves ahead with its B50 biodiesel blending policy this year.
Industrial use of 3.15 million tonnes will be little changed from year-to-year, with food use and feed use remaining at 940,000 and 108,000 tonnes, respectively. The attaché said ending stocks for 2025/26 are to dip to 2.16 million tonnes from 2.36 million.
Soybeans
The Kuala Lumpur desk projected Malaysia’s modest soybean industry to remain relatively steady in 2025/26. The country is expected to import 730,000 tonnes of soybeans from the United States, Brazil and Argentina, up from 727,000 in 2024/25.
Malaysia’s total domestic use of soybeans is to increase to 733,000 tonnes from 721,000 in 2024/25 and the carryover is projected to drop to 68,000 tonnes from 81,000.
