02/03/2026 (Oils and Fats International) - Global palm oil production in 2025/26 is expected to rise to a record 80.7M tonnes, a 3% year-on-year increase, according to forecasts by the US Department of Agriculture (USDA) reported by Germany’s Union for the Promotion of Plants and Protein (UFOP).

Higher production in Malaysia and Indonesia was behind the estimated increase, the 18 February report said.

Although Malaysian production was seasonally curbed, the USDA projected output at 20.2M tonnes, which would be a year-on-year increase of 820,000 tonnes.

Indonesia was expected to increase its production by 1.2M tonnes compared to the previous year to 46.7M tonnes.

Trade in palm oil had also increased over recent years, with 45.6M tonnes likely to be shipped across the world’s oceans in 2025/26, the report said.

According to Agrarmarkt Informations-Gesellschaft, this quantity exceeded the previous year’s volume of 45.3M tonnes by just under 1%.

Global consumption was expected to rise around 4% compared to the previous season, reaching 77.7M tonnes, and was likely to be fully met by global production this year.

Against this backdrop, ending stocks were expected to increase by just over 4% to approximately 15.3M tonnes by the end of the marketing season.

https://www.ofimagazine.com/news/palm-oil-production-set-to-hit-record-level