InfoSAWIT, KUALA LUMPUR – Malaysia’s palm oil inventories rose significantly in August 2026, as higher crude palm oil (CPO) production coincided with a decline in palm oil exports.

Citing Bernama on Friday (September 11, 2026), InfoSAWIT reported that data from the Malaysian Palm Oil Board (MPOB) showed total Malaysian palm oil stocks reached 2.82 million tonnes in August 2026.

The figure increased by 196,590 tonnes, or 7.48%, from 2.62 million tonnes recorded in July.

The increase was driven primarily by higher CPO inventories. CPO stocks climbed 15.20%, gaining 217,092 tonnes to reach 1.64 million tonnes in August, compared with 1.42 million tonnes a month earlier.

In contrast, stocks of processed palm oil edged down 1.71% to 1.17 million tonnes from 1.19 million tonnes in July 2026.

Malaysia’s CPO Production Edges Higher

On the production side, MPOB data showed that Malaysia’s CPO output increased 1.39%, or 24,903 tonnes, to 1.81 million tonnes in August. Production stood at 1.79 million tonnes in the previous month.

Palm kernel production also rose 1.97% month-on-month to 430,599 tonnes from 422,272 tonnes.

Crude palm kernel oil production edged up 0.10% to 199,589 tonnes, compared with 199,392 tonnes in July.

Meanwhile, palm kernel cake production increased 0.25% to 215,847 tonnes from 215,304 tonnes a month earlier.

Malaysia’s CPO Exports Decline

On the trade front, Malaysia’s palm oil exports moved in the opposite direction.

CPO exports fell 7.50% in August to 1.29 million tonnes, down from 1.39 million tonnes in July.

The decline in exports was one of the factors contributing to the increase in Malaysia’s palm oil inventories during the month.

Several downstream products, however, recorded stronger export performance.

Palm kernel oil exports jumped 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, meanwhile, declined 12.72% to 233,545 tonnes from 267,576 tonnes.

In contrast, biodiesel exports surged 22.59% to 35,240 tonnes from 28,745 tonnes in July.

Malaysia Records No CPO Imports

On the import side, MPOB reported that Malaysia did not import CPO during August 2026.

Imports of processed palm oil and palm oil edged down 0.09% to 49,524 tonnes from 49,566 tonnes in July.

Meanwhile, palm kernel oil imports increased 21.14% to 13,985 tonnes from 11,545 tonnes in the previous month.

The latest data show that Malaysia’s palm oil market entered August with a combination of higher production and weaker CPO exports.

The imbalance was reflected in rising inventories, with CPO stocks alone jumping more than 15% in a single month. (T2)