Malaysia’s palm oil exports jump 25% to eight-month high

Malaysia’s palm oil stockpiles jumped to their highest in eight months in May, as higher production and imports offset exports, which rose to their highest in six months, according to the Malaysian Palm Oil Board (MPOB).

Palm oil stockpiles stood at 1.99 million tonnes in May, up 6.65 per cent from the previous month, marking the third consecutive monthly increase and the highest since September 2024, The Star reported.

Crude palm oil (CPO) production increased 5.05 per cent in May, also the third consecutive monthly increase, to 1.77 million tonnes, while palm oil exports jumped 25.6 per cent to 1.39 million tonnes, the highest since November last year, the MPOB said. Imports rose to 68,900 tonnes from 58,000 tonnes in April.

The MPOB report was a bit optimistic as the market is already trading on a stockpile build of 2 million tonnes. Unless production rises further in the coming months, experts expect demand, particularly from top buyer India, to support the market.

In June, India halved its benchmark crude palm oil import duty to 10% in a bid to lower food prices and boost domestic processing.

Indian refineries had earlier reportedly cancelled orders for 65,000 tonnes of CPO in a bid to lower prices. The cancellations by buyers came after Malaysian palm oil futures surged more than 6%.

Tags: Malaysia, palm oil