Palm Oil Stocks in Malaysia Decline Due to Stronger Export Performance

13-Apr-2026 10:42 AM

Kuala Lumpur. Despite elevated prices, exports of palm oil products from Malaysia witnessed a robust increase in March 2026. Consequently, the industry's residual stock declined by 16 percent compared to February, falling to 2.27 million tonnes—its lowest level since August 2025. With residual stocks hitting a seven-month low, prices for Crude Palm Oil (CPO) in Malaysia are expected to firm up.

According to industry analysts, the decline in residual palm oil stocks for the third consecutive month suggests that supply conditions will remain somewhat tight, while global demand is expected to rise.

Although fluctuations are being observed in crude mineral oil prices, and Indonesia is set to implement its B50 program, these factors are not expected to impact the demand and consumption of palm oil; consequently, substantial exports from Malaysia are projected to continue unabated.

Following Indonesia, Malaysia is the world's second-largest producer and exporter of palm oil. Prices for palm oil had surged due to high mineral oil prices resulting from the Iran-US conflict; nevertheless, exports from Malaysia continued to rise. Moving forward, benchmark palm oil futures prices may witness further improvement.

According to data from the government agency—the Malaysian Palm Oil Board (MPOB)—Crude Palm Oil (CPO) production rose by 7.2 percent in March compared to February, reaching 1.38 million tonnes; however, this still marked the lowest production figure for the month of March in the last three years.

Exports of palm oil products surged by a robust 40.7 percent in March, reaching 1.55 million tonnes—the highest volume recorded in five months.