Malaysia’s palm oil stocks hit eight-month high

Malaysia’s palm oil stocks rose by 7.48% in August from the previous month to 2.82 mln tons, reaching their highest level in eight months. According to the Malaysian Palm Oil Board (MPOB), inventories increased for the fifth consecutive month.

Higher production contributed to the build-up in stocks. Crude palm oil output increased by 1.39% month-on-month to 1.82 mln tons in August. This marked the third consecutive monthly increase and the highest level since December 2025.

At the same time, Malaysia’s palm oil exports declined after two consecutive months of growth. Shipments fell by 7.5% from July to 1.29 mln tons in August.

Actual inventories were slightly above market expectations. Analysts surveyed by Reuters had forecast stocks at 2.76 mln tons. The production estimate of 1.82 mln tons was in line with the actual figure, while exports had been expected at 1.32 mln tons.

The combination of rising production and declining exports is contributing to a build-up of palm oil stocks in Malaysia, one of the world’s largest producers and exporters. Further inventory growth could increase pressure on prices if external demand does not recover.

Tags: prices, Malaysia, palm oil, stocks