InfoSAWIT, KUALA LUMPUR – Malaysia’s palm oil inventories rose in July 2026 as production increased more rapidly than in the previous month. Data from the Malaysian Palm Oil Board (MPOB) showed total palm oil stocks reaching 2.63 million tonnes, up 3.32%, or 84,495 tonnes, from 2.54 million tonnes in June.
According to Bernama, as reported by InfoSAWIT on Tuesday, August 11, the increase was largely driven by higher crude palm oil (CPO) inventories. MPOB data showed CPO stocks climbed 7.24%, or 96,495 tonnes, to 1.43 million tonnes in July from 1.33 million tonnes in June.
By contrast, stocks of processed palm oil edged lower. Inventories declined 0.99% to 1.20 million tonnes in July from 1.21 million tonnes a month earlier.
Malaysian CPO Production Increases
The rise in inventories came alongside stronger Malaysian CPO production. MPOB reported that CPO output reached 1.79 million tonnes in July, an increase of 9.41%, or 154,183 tonnes, from 1.64 million tonnes in June.
Palm kernel production also increased 10.69% month-on-month to 422,266 tonnes, compared with 381,486 tonnes in June.
Production of downstream palm kernel products also expanded. Crude palm kernel oil (CPKO) output rose 14.55% to 199,392 tonnes from 174,071 tonnes, while palm kernel cake production increased 10.11% to 215,304 tonnes from 195,534 tonnes.
Palm Oil Exports Grow
Despite the increase in production and inventories, Malaysian palm oil exports recorded solid growth during July.
MPOB data showed palm oil exports reached 1.39 million tonnes, up 14.50% from 1.22 million tonnes in June.
However, exports of palm kernel products moved in different directions. Palm kernel oil shipments slipped 1.73% to 82,261 tonnes from 83,712 tonnes, while palm kernel cake exports fell 8.72% to 203,454 tonnes from 222,887 tonnes.
Oleochemical exports, meanwhile, increased 17.81% to 265,198 tonnes from 255,098 tonnes.
The sharpest growth was recorded in biodiesel exports. Malaysia’s biodiesel shipments surged 496.77%, rising from just 4,817 tonnes in June to 28,745 tonnes in July 2026.
On the import side, Malaysia recorded no CPO imports during July.
Imports of processed palm oil and palm oil declined 51.93% to 49,566 tonnes from 103,113 tonnes in June. In contrast, palm kernel oil imports jumped 93.12% to 11,545 tonnes from 5,978 tonnes.
The July data present a mixed picture for Malaysia’s palm oil market. Stronger production pushed inventories higher, but the substantial increase in palm oil exports provided an important counterweight. The combination of these factors will remain closely watched by market participants as they assess the direction of CPO prices in the coming weeks. (T2)
