Export cuts push Malaysian palm oil stocks to 4-month high

According to Oil World, during June, palm oil stocks in Malaysia rose from 2.43 million tons to a 4-month high of 2.54 million tons, compared to 2.03 million tons at this time last year.

 

The reason was the low rate of oil exports from the country (1.2 million tons were shipped in June compared to 1.26 million tons in June 2025) and an increase in imports to 103 (70) thousand tons.

 

Crude palm oil production in June increased compared to May from 1.52 to 1.64 million tons (1.69 million tons in June 2025).

 

As production volumes are lower than last year's for the fourth consecutive month, analysts have lowered the production forecast for 2026 to 19.8 million tons (20.28 million tons in 2025), but if the trend continues, they may revise it downward again. In 6 months of 2026, palm oil production in Malaysia amounted to 9.02 million tons compared to 8.97 million tons in the same period last year.

 

Meanwhile, palm oil exports from Malaysia picked up slightly in July. In the first 10 days, shipments were 5% higher than in June and 10% higher than last year, indicating stronger demand.

 

However, the market still remains under pressure from production cuts and rising inventories.