What caused the overall palm oil stocks to increase by 3.32% in July?

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Increase in Malaysian Palm Oil Stockpiles Attributed to Production Outpacing Exports

Malaysia's overall palm oil stockpiles saw a 3.32% increase, reaching 2.63 million tonnes in July 2026, a rise of 84,495 tonnes from the previous month. This build-up in inventory is primarily driven by a significant increase in production across various palm oil products, which outpaced the growth in overall exports. While total palm oil exports rose by 14.50% to 1.39 million tonnes, the surge in output for crude palm oil (CPO) and palm kernel products contributed more substantially to the stock levels.
Production Surges Across Key Palm Oil Segments

The month of July witnessed a notable uptick in the production of key palm oil commodities. Crude palm oil (CPO) output alone climbed by 9.41%, adding 154,183 tonnes to reach 1.79 million tonnes. This increase in CPO production was complemented by a 10.69% rise in palm kernel output, which totalled 422,266 tonnes. Further downstream, crude palm kernel oil production experienced a substantial jump of 14.55%, reaching 199,392 tonnes, while palm kernel cake output also saw a healthy increase of 10.11%, amounting to 215,304 tonnes.
Exports Showed Mixed Performance Despite Overall Growth

While overall palm oil exports saw a healthy increase of 14.50% in July, reaching 1.39 million tonnes, the performance of specific export categories varied. Palm kernel oil exports experienced a slight decrease of 1.73%, and palm kernel cake exports declined by 8.72%. However, oleochemical exports demonstrated robust growth, rising by 17.81%, and biodiesel exports surged dramatically by 496.77% to 28,745 tonnes. Despite these export increases, the substantial rise in production across CPO and palm kernel derivatives contributed more significantly to the month-end stock figures.
Imports Declined Significantly, Particularly for Processed Palm Oil

Imports of palm oil products into Malaysia saw a considerable reduction in July. Notably, there were zero imports of CPO. Imports of processed palm oil and palm oil combined fell by 51.93% to 49,566 tonnes. While palm kernel oil imports advanced significantly by 93.12% to 11,545 tonnes, the overall trend indicated a substantial decrease in incoming palm oil products, which would have contributed to the net increase in domestic stockpiles when viewed against production levels.

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What caused the overall palm oil stocks to increase by 3.32% in July?

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