Malaysia’s palm oil inventories climbed in August as higher CPO production coincided with a sharp decline in exports, pushing crude palm oil stocks up more than 15% month on month.
PALMOILMAGAZINE, KUALA LUMPUR — Malaysia’s palm oil inventories rose sharply in August 2026 as higher crude palm oil (CPO) production coincided with weaker exports, according to data from the Malaysian Palm Oil Board (MPOB).
Total palm oil stocks reached 2.82 million tonnes at the end of August, up 196,590 tonnes, or 7.48%, from 2.62 million tonnes in July, Bernama reported Saturday (Sept. 12), citing MPOB data.
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The increase was driven primarily by CPO inventories. CPO stocks jumped 15.20%, or 217,092 tonnes, to 1.64 million tonnes from 1.42 million tonnes a month earlier.
In contrast, stocks of processed palm oil fell 1.71% to 1.17 million tonnes from 1.19 million tonnes in July.
CPO Production Edges Higher
Malaysia’s CPO production increased 1.39%, or 24,903 tonnes, month on month to 1.81 million tonnes in August, compared with 1.79 million tonnes in July.
Palm kernel production also rose 1.97% to 430,599 tonnes from 422,272 tonnes.
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Crude palm kernel oil (CPKO) production edged up 0.10% to 199,589 tonnes from 199,392 tonnes, while palm kernel cake output increased 0.25% to 215,847 tonnes from 215,304 tonnes.
The rise in production added to supply availability at a time when exports were moving lower.
Malaysia’s Palm Oil Exports Decline
Malaysia’s palm oil exports fell 7.50% month on month to 1.29 million tonnes in August, down from 1.39 million tonnes in July.
The decline in exports was a key factor behind the increase in overall palm oil inventories during the month.
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Some downstream products, however, recorded stronger overseas shipments. Palm kernel oil exports rose 37.22% to 112,879 tonnes from 82,261 tonnes, while palm kernel cake exports increased 6.45% to 216,584 tonnes from 203,454 tonnes.
Oleochemical exports moved in the opposite direction, declining 12.72% to 233,545 tonnes from 267,576 tonnes.
Biodiesel exports, meanwhile, jumped 22.59% to 35,240 tonnes from 28,745 tonnes in July.
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Malaysia Records No CPO Imports
On the import side, Malaysia did not import CPO during August 2026, according to MPOB data.
Imports of processed palm oil and palm oil edged down 0.09% to 49,524 tonnes from 49,566 tonnes in July.
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Palm kernel oil imports, however, increased 21.14% to 13,985 tonnes from 11,545 tonnes a month earlier.
The August data point to a more comfortable supply balance in Malaysia’s palm oil market, with production rising while CPO exports weakened. The combination pushed total inventories higher and resulted in a particularly sharp increase in CPO stocks, which climbed more than 15% in a single month.
For the global palm oil market, the increase in Malaysian inventories could add to supply-side pressure on prices, particularly if export demand remains subdued in the coming months. (P2)
