Malaysia’s palm oil stocks reach 6-1/2-year high in October

Malaysia’s palm oil inventories rose in October to their highest level in six and a half years — 2.46 million tons — according to data from the Malaysian Palm Oil Board (MPOB). The sharp increase was driven by the largest monthly output in a decade, which outweighed a notable jump in exports.

MPOB reported that crude palm oil production surged by 11.02% from September to 2.04 million tons — the highest since August 2015. Exports also grew strongly, rising 18.58% to 1.69 million tons, marking their fastest pace of growth in a year.

Despite the robust export performance, the surge in output pushed overall inventories up by 4.44% from the previous month. The growing stockpiles may pressure Malaysian palm oil futures, which are currently trading near a four-month low.

A Reuters survey had forecast inventories at around 2.44 million tons, but the actual figure slightly exceeded expectations. Analysts note that production is likely to slow from November, while export demand could strengthen since palm oil is currently cheaper than other vegetable oils.

Traders say the market will closely monitor export trends and production dynamics in the coming weeks. A pickup in shipments could help stabilize prices, but for now, record-high inventories remain the key factor limiting any significant price recovery.

Tags: Malaysia, palm oil, stocks