InfoSAWIT, KUALA LUMPUR – Malaysia's palm oil industry recorded a decline in performance throughout June 2025. According to the latest report from the Malaysian Palm Oil Board (MPOB), the country's palm oil exports fell by 10.52 percent month-on-month, from 1.41 million tons in May to 1.26 million tons in June.

Not only exports, but production also showed signs of weakness. Crude palm oil (CPO) production decreased by 4.48 percent to 1.69 million tons from 1.77 million tons in the previous month. A decline in production was also observed in other derivative products. Palm kernel production shrank by 5.66 percent to 396,863 tons, while crude palm kernel oil (CPKO) production plummeted by 8.48 percent to 192,665 tons. At the same time, palm kernel cake production also fell by 7.85 percent to 213,398 tons.

As reported by InfoSAWIT from Bernama on Saturday, July 12, 2025, this decline in production has not significantly impacted the total palm oil stock. Although CPO stocks recorded a decrease of 5.42 percent to 1.04 million tons from 1.10 million tons previously, refined palm oil stocks sharply increased by 12.19 percent, from 881,372 tons to 988,840 tons. The accumulation of both resulted in a total palm oil stock in Malaysia of 2.03 million tons in June, compared to 1.99 million tons in May.

In terms of exports of derivative products, the downward trend is quite sharp, especially in biodiesel, which plummeted by 91.50 percent from 32,848 tons in May to only 2,792 tons in June. Exports of palm kernel oil also drastically decreased by 27.60 percent to 86,173 tons. Oleochemical exports recorded a decline of 12.95 percent to 202,829 tons, while palm kernel cake exports slightly weakened by 1.84 percent to 189,774 tons.

Meanwhile, there were no CPO imports recorded in June. However, imports of palm kernel oil surged by 47.70 percent to 11,926 tons, compared to 8,074 tons in May.

This report reflects a trend of weakening in Malaysia's palm oil sector as it approaches the second half of 2025. The decline in performance across various lines—from production to exports—serves as an important signal for industry players and the global market to closely monitor future developments. (T2)