Oils & Fats International (12/08/2026) - Malaysia’s palm oil stocks are forecast to rise for a fifth consecutive month in July to reach their highest level in almost two years, as production growth outpaces exports, Reuters reports.

Palm oil stocks were expected to increase to 2.25M tonnes, up 10.8% from June, according to the 4 August report based on a median estimate of 11 traders, planters and analysts polled by Reuters.

Crude palm oil (CPO) output is expected to reach 1.83M tonnes, an 8% increase from the previous month, following last month’s decline and hitting a one-year high.

Stocks were forecast to increase due to a jump in production and adjustments to domestic consumption figures, said Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group.

A stock level above 2M tonnes during peak production season was not concerning, given that Indonesia’s palm oil export supplies remained tight due to its ongoing 40% palm-based biodiesel (B40) mandate, Bagani added.

“However, palm oil has to compete hard with South American and Black Sea soyabean oil, which have had very good crop yields this season,” he said.

Exports of palm oil products were projected to increase by 3.2% to 1.3M tonnes, reversing last month’s decline, the survey showed.

Malaysian July exports were capped by discount selling by rival palm oil supplier Indonesia, ahead of a higher export duty due to come into effective in August, said Tajgir Rahman, general manager, trading and procurement at IFFCO.

Read more at https://www.ofimagazine.com/news/malaysian-end-of-july-palm-oil-stocks-hit-near-two-year-high