What factors contributed to the overall rise in Malaysian palm oil stocks in July?

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Factors Contributing to Malaysia's Palm Oil Stock Increase in July

Malaysia's palm oil stockpiles saw a notable increase of 3.32 per cent, reaching 2.63 million tonnes in July 2026. This rise occurred despite a significant 14.50 per cent increase in overall palm oil exports during the same period. The upward trend in total stocks was primarily influenced by a substantial surge in crude palm oil (CPO) production that outpaced export growth for that specific commodity, alongside shifts in import volumes for various palm oil derivatives.
Increased Production of Crude Palm Oil and Palm Kernel Products

A key driver for the overall stock increase was the robust growth in production. Crude palm oil output experienced a significant jump of 9.41 per cent, climbing to 1.79 million tonnes in July 2026 from 1.64 million tonnes the previous month. Concurrently, palm kernel output also demonstrated strong growth, rising by 10.69 per cent to 422,266 tonnes. Further downstream, crude palm kernel oil production saw a substantial increase of 14.55 per cent, reaching 199,392 tonnes, while palm kernel cake output climbed by 10.11 per cent to 215,304 tonnes. This elevated production across various palm oil products contributed to a larger overall supply within the country.
Mixed Performance in Exports and Imports

While overall palm oil exports rose by 14.50 per cent to 1.39 million tonnes in July, the performance of specific export categories and import trends played a role in the stock build-up. Oleochemical exports saw a healthy increase of 17.81 per cent to 265,198 tonnes, and biodiesel exports surged dramatically by 496.77 per cent to 28,745 tonnes. However, exports of palm kernel oil and palm kernel cake experienced declines. On the import side, processed palm oil and palm oil imports decreased significantly by 51.93 per cent to 49,566 tonnes. In contrast, palm kernel oil imports saw a substantial rise of 93.12 per cent to 11,545 tonnes. The net effect of these varying export and import flows, coupled with high production, contributed to the higher end-of-month stock levels.
Growth in Crude Palm Oil Stocks Outpacing Processed Palm Oil Decline

Within the total stockpile, crude palm oil stocks saw a substantial increase of 7.24 per cent, reaching 1.43 million tonnes in July. This growth in CPO stocks was a primary contributor to the overall rise. While processed palm oil stockpiles saw a slight decrease of 0.99 per cent to 1.20 million tonnes, the significant expansion in CPO inventories meant that the net change for total palm oil stocks was positive. This indicates that the increase in the raw commodity's stock was more pronounced than the decrease in its processed forms, leading to the overall accumulation.

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What factors contributed to the overall rise in Malaysian palm oil stocks in July?

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