Malaysia’s Palm Oil Stocks Set To Hit 2-Year High In July
04/08/2025 (Business Today Editorial) - Malaysia’s palm oil inventories are projected to rise for a fifth straight month in July, reaching their highest level in nearly two years as output growth outpaces exports, a Reuters survey of traders and analysts showed on Aug 4.
Stockpiles are expected to climb 10.8% from June to 2.25 million metric tonnes, driven by a sharp recovery in crude palm oil production, which is forecast to increase 8% to 1.83 million tonnes, the highest monthly output in a year.
The surge in stocks is attributed to improved production and adjustments in domestic consumption figures, said Anilkumar Bagani, head of research at Sunvin Group.
“A stock level above two million tonnes during peak production isn’t a concern, especially with Indonesia’s supplies constrained by its B40 biodiesel mandate,” he added.
Exports are forecast to rebound 3.2% to 1.3 million tonnes after declining in June. However, aggressive discounting by Indonesia ahead of an August export duty hike limited Malaysia’s export momentum, according to Tajgir Rahman, trading and procurement head at IFFCO.
Despite competition from abundant soybean oil supplies in South America and the Black Sea region, Malaysia’s palm oil sector remains buoyed by seasonal production strength and steady demand.
The Malaysian Palm Oil Board will release official supply and demand data on Aug 11. Based on current estimates, domestic consumption in July is projected at 368,275 tonnes.