News Capsule: Malaysia’s palm oil exports rise in September; stocks hit 22-month high
22-Oct-2025 10:44 AM
News Capsule: Malaysia’s palm oil exports rise in September; stocks hit 22-month high
★ Malaysia’s palm oil exports reached 1.42 million tonnes in September 2025, up by 102,000 tonnes (+7.7%) from the previous month. Most regions recorded higher shipments, with the largest increase seen in South Asia, where exports to India rose to 312,000 tonnes – the highest in 11 months.
★ Palm oil stocks in Malaysia climbed to 2.36 million tonnes in September, the highest level in 22 months. The rise was driven by domestic consumption returning to the normal range of 300,000–350,000 tonnes per month, along with a 20,000-tonne (+33.9%) increase in imports.
★ By mid-October, palm oil prices were trading at a premium of US$42 per tonne over soybean oil in Europe and US$26 higher in India.
★ Speculation over Indonesia’s potential implementation of the B50 biodiesel mandate has provided price support. If implemented, the policy would require 17 million tonnes of palm oil, which could reduce exportable supply significantly.
★ Global vegetable oil prices are expected to remain firm through the rest of 2025, supported by strength in palm and soybean oil, reduced soybean oil exports from Argentina, and ongoing speculation surrounding Indonesia’s biodiesel policy.
★ However, weak crude oil prices, high stock levels in China and India, and persistent US-China trade tensions are likely to keep market sentiment cautious.