Palm Oil Stocks in Malaysia Hit New Record High

Kuala Lumpur. Malaysia's palm oil inventory has surged to a historic record high due to the ongoing peak production season and extremely weak export performance. Palm kernel oil stocks have also witnessed a significant increase. This sharp rise in inventories could exert downward pressure on palm oil prices.

According to the latest monthly data from the Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) production in Malaysia jumped 16.48 percent in September 2026 compared to August, reaching a peak of 2,116,950 tonnes. Meanwhile, total exports of palm oil products fell by 12.13 percent to 1,120,395 tonnes during the same period. This resulted in a substantial increase of over 24 percent in outstanding stocks.

The MPOB report indicates that by the end of September 2026, Malaysia's total palm oil inventory had surged by 24.54 percent to an all-time high of 3,510,897 tonnes. Within this total, crude palm oil stocks rose by 31.88 percent to 2,163,173 tonnes, while stocks of refined palm oil/palmolein increased by 14.33 percent to 1,347,724 tonnes.

During the same period, palm kernel oil stocks also climbed by 17.11 percent, reaching a level of 397,225 tonnes. Despite a robust increase in production, palm oil imports into Malaysia rose to 58,064 tonnes in September, marking a 17.24 percent increase over the total imports in August.