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Malaysian palm oil production fell in February for the fourth consecutive month, declining 18.5%, or 293,000 tonnes, from January 2026.
The drop, which brought output to 1.28 million tonnes in February, is attributed mainly to fewer harvesting days because of the shorter month and the Lunar New Year holiday, according to the Malaysian Palm Oil Council.
The council said in a statement that palm oil exports remained strong in February, accounting for 88% of Malaysian output and helping to reduce stock levels, even though exports fell 22.5% month on month to 1.12 million tonnes.
Cumulative exports for January and February, by contrast, rose 18.7% to 2.58 million tonnes, with India contributing the largest share of that increase.
The Malaysian Palm Oil Council set out the current market context:
"Vegetable oil prices trended higher in March after a long period of stability stretching back to mid-2025, supported by rising crude oil prices amid logistical disruption in the Strait of Hormuz, along with force majeure declarations by several major Middle Eastern refineries. Among the main vegetable oils, palm oil led the price gains, rising 10% since the conflict broke out on 27 February."
The council added: "By comparison, rapeseed oil rose 4% and sunflower oil gained 3%, while soybean oil managed gains of just 1% on the global market."
The sharp rise in global gasoil prices has improved the competitiveness of biodiesel use and blending:
India's palm oil imports rebounded 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 South American soybean oil traded at levels comparable to palm oil in March, India is expected to continue favouring palm oil imports through March and April as a result of the sharp rise in freight costs.
Source: The Star