Malaysia’s palm oil exports surge 56%, but stocks reach record high
Malaysia’s palm oil exports surged 55.75% month-on-month to 1.71 million tonnes in October 2026, but inventories climbed 3.15% to a record 3.62 million tonnes. Record crude palm oil production of 2.154 million tonnes and seven consecutive months of stock growth continue to pressure prices.
Malaysia increased its palm oil exports by 55.75% month-on-month in October 2026 to 1.71 mln tons, compared with 1.1 mln tons in September. However, the strong recovery in overseas shipments failed to prevent a further buildup in inventories, which rose by 3.15% to a record 3.62 mln tons. According to the Malaysian Palm Oil Board (MPOB), stocks have increased for seven consecutive months, indicating persistently abundant supplies in one of the world’s largest palm oil-producing countries.
Malaysia’s crude palm oil (CPO) production reached 2.154 mln tons in October, up 1.74% from 2.117 mln tons in September. This marked a new monthly production record, surpassing the previous high recorded in September. Output has increased for five consecutive months, maintaining ample supplies despite a substantial recovery in exports.
The largest inventory increase occurred in crude palm oil, with stocks rising by 7.46% from 2.16 mln to 2.32 mln tons. Meanwhile, processed palm oil inventories declined by 3.77% to 1.297 mln tons, compared with 1.348 mln tons in September. Total palm oil stocks reached 3.621 mln tons, exceeding the previous record of 3.511 mln tons set a month earlier.
Malaysia also recorded a sharp decline in processed palm oil imports in October. Volumes fell by nearly 49% to 26.2 thsd tons, compared with 51.3 thsd tons in September. Meanwhile, biodiesel exports increased by 84.5% to 5.4 thsd tons. The recovery in palm oil exports coincided with increased purchases by India, which remains one of the world’s leading consumers of edible oils.
Despite the sharp increase in exports, record inventories continue to weigh on the price outlook for Malaysian palm oil. Further market developments will depend on seasonal production trends, purchasing activity among major importers and competition from Indonesia. Analysts expect inventories to remain elevated through the end of 2026, although stocks could decline in the first quarter of 2027 due to a seasonal slowdown in production.
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Source : Ukr Agro Consult
