Malaysia: Oilseeds and Products Update

Malaysia's palm oil production for MY 2025/26 is revised higher on improved harvested area productivity, stronger early-year output, and more consistent harvesting conditions. Palm kernel, palm kernel meal, and palm kernel oil estimates are revised upward in line with increased productivity and crushing activity, with domestic feed and oleochemical demand expected to absorb the increased share of available supply. Palm oil exports are expected to remain competitive in key Asian and Middle Eastern markets, while biofuel policy developments in Indonesia may tighten regional exportable supplies and support Malaysia's export position. Soybean, soybean meal, and soybean oil estimates reflect modest gains in crushing, feed demand, and consumption, supported by competitive pricing, steady import availability, and stable use in food and feed sectors.