Malaysia’s palm oil inventories are projected to rise to their highest levels in six months by the end of August, primarily due to weak export demand. A Reuters survey indicates that palm oil stocks may reach approximately 1.86 million metric tons, reflecting a 7.31% increase from the end of July.
Crude palm oil (CPO) production in Malaysia, the world’s second-largest producer of palm oil, is anticipated to increase to 1.89 million tons—marking the highest output since October 2023, which is a 2.93% month-on-month rise. However, shipments of palm oil products are estimated to have declined by 11.21% month-on-month to 1.5 million tons in August, driven by decreased demand from major buyers like China and India.
Darren Lim, a commodities strategist at Phillip Nova in Singapore, noted that while stockpiles are expected to rise, they should remain within manageable levels, keeping the market relatively balanced for the time being. He added that continued production growth in September will largely depend on export demand and any potential changes in biodiesel mandates.
The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly palm oil data on September 10.