Wedoany.com Report-Dec.16, Malaysia's palm oil stockpiles rose for the sixth straight month in November 2025, climbing 13 percent month-on-month to 2.84 million tonnes, the highest level in more than six and a half years.

The increase was primarily driven by a sharp 28.1 percent drop in exports to 1.21 million tonnes, which more than offset a 5.3 percent decline in production to 1.94 million tonnes. Year-on-year, however, production remained 19.4 percent higher.

Analysts attribute the weaker export performance to the completion of pre-holiday restocking by major buyers and a seasonal slowdown in demand from regions experiencing colder weather. Global consumption patterns typically soften during this period.

Industry observers anticipate that November may represent the peak for inventories this cycle. However, the subsequent drawdown is likely to proceed gradually over the coming months, given historically subdued demand between November and February.

Crude palm oil prices have declined approximately 10 percent since late October, reflecting the pressure from elevated supplies and softer international purchasing activity.

The sustained buildup in stocks highlights ongoing challenges in balancing production with export flows. Malaysia's annual palm oil output is projected to reach 20 million tonnes for the first time, underscoring the country's significant role in the global vegetable oils market.

Higher inventory levels provide a buffer against potential supply disruptions but can also weigh on pricing dynamics when demand growth lags. Market participants continue to monitor weather conditions, buyer restocking behavior, and competing oilseed supplies for indications of future trends.

The combination of robust production and temporary export weakness has created a surplus environment in the near term. As seasonal factors ease in early 2026, analysts will assess whether demand recovery aligns sufficiently to facilitate a more rapid normalization of stock levels.

Overall, the November data reflects typical cyclical patterns in the palm oil sector, where production peaks and export demand fluctuates according to festival calendars and climatic influences in consuming regions.