The latest data released by the Malaysian Palm Oil Board (MPOB) point to an overall slowdown in the country's palm oil industry during February 2026, with production and export figures falling sharply compared with January, even as imports posted an exceptional jump.
Here are the key findings from the Board's monthly report:
🔻 Sharp drop in production:
- Crude palm oil (CPO): Total output fell by 18.55%, dropping to 1.28 million tonnes in February from 1.57 million tonnes in January.
- Kernel products: Palm kernel production declined by 19.48%, while crude palm kernel oil output fell by 26.29% to 145,716 tonnes.
📦 Changes in stock levels:
- Total palm oil stocks: Edged down by 3.94% to 2.70 million tonnes.
- Crude palm oil stocks: Fell by 11.67% to 1.47 million tonnes.
- By contrast, processed palm oil stocks rose by 7.37% to 1.22 million tonnes, supported by higher inventories in Peninsular Malaysia and Sabah.
🚢 Slower export activity:
- Palm oil exports: Suffered a steep decline of 22.48%, with shipments falling from 1.45 million tonnes in January to 1.12 million tonnes in February.
- Biodiesel and oleochemicals: Biodiesel exports dropped by 14.86%, while oleochemical exports fell by 7.49%.
📈 Record surge in imports:
- Bucking the overall downward trend, palm oil imports, entirely made up of processed palm oil, posted an exceptional increase of 136.03%, jumping from 32,316 tonnes in January to 76,276 tonnes in February.
The Board's February 2026 report reflects the dynamic challenges facing Malaysian markets, marked by slowing production and weaker external demand, which have pushed the domestic market to boost supplies of processed oils through imports to plug potential gaps or meet trade commitments.
