News Capsule: Palm Output in Malaysia Likely to Fall, Prices May Rise
05-Mar-2026 05:58 PM
News Capsule: Palm Output in Malaysia Likely to Fall, Prices May Rise
★ Palm oil production in Malaysia is expected to decline sharply in February due to heavy floods in the Sabah region.
★ According to a Bloomberg survey, production is estimated to fall by about 16% to around 1.33 million tonnes in February. This would be the biggest monthly drop since January 2025 and mark the fourth consecutive month of declining production.
★ Malaysia’s palm oil inventories are also expected to decline by about 6% from January to around 2.65 million tonnes, which would be the lowest level in the last four months. However, the fall in stocks may be limited due to weaker exports.
★ The survey estimates that exports in February may drop by nearly 20% to about 1.19 million tonnes.
★ If inventories continue to decline, palm oil prices may receive support in the market. Meanwhile, rising tensions in West Asia and uncertainty in global trade are keeping the vegetable oil market cautious about demand prospects.