# Supply glut could soon squeeze independent palm oil millers and smallholders

> Record-high inventories have led Malaysian refineries to reduce crude palm oil purchases from independent mills, leaving some millers with unsold and deteriorating stocks. Industry sources warned that mills may soon stop buying fresh fruit bunches from smallholders, with the disruption potentially lasting until February 2027 without government action.

- Date: 2026-11-08 · published 2026-11-08T09:06:39.537Z
- Category: market · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/87270-supply-glut-could-soon-squeeze-independent-palm-oil-millers-and-smallholders
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Accumulating stocks and weaker refinery intake increase available palm oil supply and put prices under pressure, while millers’ reduced fruit purchases could eventually constrain production.

## Read by commodity

- PALMOIL: bearish ▼

## Sources

- prestasisawit.mpob.gov.my: https://prestasisawit.mpob.gov.my/en/palmnews/news/40176

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.