PALMOILMAGAZINE, JAKARTA – Malaysia’s palm oil supply recovered strongly in June 2026 as production expanded faster than export demand, pushing inventories to their highest level for the month of June in several years and drawing close attention from global market participants.
According to data released by the Malaysian Palm Oil Board (MPOB) on Friday (July 10, 2026), Malaysia’s palm oil stocks reached 2.54 million metric tons at the end of June, up 4.78% from May.
The increase was driven primarily by a sharp rebound in crude palm oil (CPO) production, which rose 8.08% month-on-month to 1.64 million metric tons, the highest output level in six months. The recovery marked a turnaround from the production weakness recorded in May as harvesting activities improved.
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On the demand side, exports also strengthened. Shipments of Malaysian palm oil to international markets increased 6.2% to 1.20 million metric tons, ending a two-month decline.
Despite the improvement in exports, production growth outpaced the increase in shipments, resulting in higher inventory levels. Rising stocks remain an important indicator for traders because they can influence the balance of global palm oil supply and shape price movements in the coming weeks.
Amid the stronger supply fundamentals, CPO futures on the Bursa Malaysia Derivatives exchange briefly climbed to a four-month high during June trading. However, the buildup in inventories is expected to remain a key factor for investors assessing price prospects for the second half of 2026.
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The MPOB figures were broadly in line with market expectations. A prior Reuters survey had projected Malaysian palm oil stocks at around 2.50 million metric tons, with production near 1.65 million metric tons and exports at approximately 1.30 million metric tons for June.
Although the actual production and stock figures differed only slightly from forecasts, the report confirmed that supply recovery is occurring faster than demand growth, keeping upward pressure on Malaysia’s palm oil inventories. (P3)
