Malaysia's palm oil stocks rise for first time in 4 months

According to an official report released by the Malaysian Palm Oil Board (MPOB) on May 11, Malaysian palm oil stocks rose for the first time in four months, helped by a seasonal increase in production. Last year, palm oil stocks in the country grew for 10 consecutive months, reaching a 7-year high of 3.05 million tonnes in December.

 

Palm oil production in Malaysia in April increased by 18.4% compared to March to 1.63 million tons due to favorable weather.

 

Palm oil exports in April increased by 14.3% to 1.30 million tonnes, but in the second half of the month the pace of deliveries decreased sharply due to rising palm oil prices, which led to a decrease in demand from India.

 

Palm oil stocks in Malaysia rose 1.7% to 2.30 million tonnes in April, the first increase in four months, driven by a significant increase in production and a simultaneous decline in export demand.

 

In April 2026, Malaysia increased the export duty on crude palm oil from 9% to 9.5%, which, together with the increase in the base price to 3,935.19 ringgit/t, reduced the competitiveness of the product in foreign markets, in particular in India and China.

 

Due to increased production and inventories, June palm oil futures on the Bursa Malaysia exchange fell 3.2% during the week to a two-month low of 4,438 ringgit/t or $1,130/t.