Malaysia’s palm oil stocks hit record high of 3.51 mln tons

Malaysia’s palm oil stocks rose to a record 3.51 mln tons by the end of September 2026, up 700 thsd tons from the previous month and 1.15 mln tons above the level recorded a year earlier. According to Oil World, the main driver behind the stock buildup was a significant increase in production amid favorable harvesting conditions. Meanwhile, improved price competitiveness of palm oil began to stimulate a recovery in export demand.

In September, Malaysia’s crude palm oil production reached an all-time high of 2.12 mln tons. Oil palm yields were approximately 20% above the ten-year average, resulting in a substantial increase in supply. Overall, the country produced 5.73 mln tons of palm oil in July–September, compared with 5.51 mln tons during the same period in 2025, representing a 4% increase.

In January–September 2026, Malaysia’s total palm oil production reached a record 14.75 mln tons, exceeding the previous year’s level by 2%. However, analysts expect output in the final quarter of the year to fall below the volume recorded in October–December 2025. The decline in production could become more pronounced in 2027, potentially limiting further stock accumulation.

Despite record supplies, signs of recovering demand have begun to emerge in the export market. Improved price competitiveness has encouraged importers to resume more active purchases of palm oil. The most notable increase in demand came from India, which remains one of the key buyers of Malaysian palm oil. As a result, Malaysia’s palm oil exports increased by approximately 130 thsd tons in September compared with August.

The positive export trend continued into early October. During the first ten days of the month, Malaysia shipped around 500 thsd tons of palm oil to international markets. At the same time, record inventories continue to contribute to ample supplies in the global vegetable oil market. Further developments will depend on the pace of recovery in import demand, particularly from India, and the expected seasonal decline in production towards the end of 2026.

Tags: palm oil, stocks, Malaysia