Malaysia’s palm oil stockpiles rose for the first time in four months

Malaysia’s palm oil stockpiles increased in April for the first time in the past four months amid higher production and weaker exports. According to the Malaysian Palm Oil Board (MPOB), inventories at the end of the month reached 2.31 million tonnes, up 1.7% compared to March.

The main driver behind the increase was a significant rise in production. Crude palm oil output in April climbed 18.4% to 1.63 million tonnes. At the same time, imports also exceeded analysts’ expectations. With external demand slowing, a larger share of production remained on the domestic market.

Malaysia’s palm oil exports fell by 14.3% in April to 1.3 million tonnes. One of the key reasons was lower demand from India, one of the world’s largest vegetable oil importers. Indian buyers reduced palm oil purchases due to high prices and a narrower discount compared to competing edible oils.

Higher inventories have put pressure on the market and contributed to a decline in palm oil futures, which are currently trading near a three-week low. Analysts note that rising supply combined with weaker exports reduces urgency for immediate shipments and reinforces expectations of ample short-term availability.

However, the market could receive medium-term support from biodiesel expansion programs in Indonesia and Malaysia. Both countries are preparing to increase mandatory palm oil blending rates in biofuel production, which would channel more supply into domestic consumption and help reduce export surpluses.

Tags: Malaysia, palm oil, stocks