KUALA LUMPUR: Malaysia’s palm oil stocks hit a six-and-a half year high in October, rising 4.44 per cent from the previous month to 2.46 million tonnes.

Data from industry regulator Malaysian Palm Oil Board on Monday showed that crude palm oil (CPO) production was up 11.02 per cent last month from September to 2.04 million tonnes, its highest since August 2015.

Palm oil exports climbed 18.58 per cent to 1.69 million tonnes, marking their strongest rate of growth in a year, MPOB said.

A Reuters survey had forecast inventories at 2.44 million tonnes, with output seen at 1.94 million tons and exports at 1.48 million tonnes.

Meanwhile, some analysts raised their CPO price assumption to RM4,350 per tonne for 2025, from year-to-date level of RM4,337 per tonne and RM4,500 per tonne for 2026.

CGS International’s Jacquelyn Yow said this will be supported by rising biodiesel demand tightening global vegoil exports, slower palm oil supply growth, and long-term supply risks from land issues in Indonesia.

Yow noted that 1.5 million hectares of plantations there have been seized and 1.8 million ha are under review, potentially reducing production from the second half of 2026 and supporting CPO prices.

A for Malaysian planters under its coverage, CGS International said Genting Plantations Bhd, SD Guthrie Bhd and Hap Seng Plantations Bhd would deliver the strongest earnings uplift with every five per cent rise in CPO price.

“With current strong CPO price momentum, we expect upstream plantation companies to benefit more significantly than downstream players, while integrated players’ earnings may be diluted by the higher feedstock prices,” it said.

After factoring in its revised CPO price estimate, revised Indonesia export levy and duty, any forward commitments and higher cost of production for 2026, CGS International said its earnings revisions suggest Hap Seng Plantations, SD Guthrie and Ta Ann Holdings Bhd would benefit most from higher CPO prices.

Hong Leong Investment Bank Bhd (HLIB) said higher palm product prices and seasonally higher FFB output will likely lift most planters’ upstream earnings in the upcoming results season.

HLIB kept its 2025-2026 CPO price assumptions at RM4,300 per tonne and RM4,200 per tonne respectively, as well as its “Overweight” stance on the sector.

It prefer planters with greater exposure to Malaysian upstream operations, given their high leverage to CPO prices and minimal exposure to land confiscation risk.

Source : NST