Malaysia's palm oil stocks rise 3.32% to 2.63 million tonnes in July - MPOB

Inventories back above 2.6 million tonnes

Malaysia's palm oil stockpiles rose 3.32%, or 84,495 tonnes, to 2.63 million tonnes in July 2026 from 2.54 million tonnes in June, according to the Malaysian Palm Oil Board (MPOB), whose monthly industry performance report was carried by Astro Awani. The increase was concentrated in crude palm oil (CPO), where stocks climbed 7.24%, or 96,495 tonnes, to 1.43 million tonnes from 1.33 million tonnes a month earlier.

Processed palm oil inventories moved the other way, easing 0.99% to 1.20 million tonnes from 1.21 million tonnes in June. The split leaves the surplus sitting in unrefined feedstock at mills and bulk installations, while holdings of finished product were drawn down slightly.

Output rises across the palm complex

CPO production rose 9.41%, or 154,183 tonnes, to 1.79 million tonnes in July from 1.64 million tonnes in June. The gain extended through the kernel segment:

• Palm kernel production increased 10.69% month on month to 422,266 tonnes from 381,486 tonnes.
• Crude palm kernel oil output rose 14.55% to 199,392 tonnes from 174,071 tonnes.
• Palm kernel cake production was up 10.11% at 215,304 tonnes from 195,534 tonnes.

Palm kernel oil output grew faster than kernel production itself, 14.55% against 10.69%, while palm kernel cake, the residue left after crushing, tracked kernel volumes closely at 10.11%. The pattern points to higher crusher throughput alongside the larger fruit deliveries reported for the month.

Even with stronger shipments, total available supply exceeded offtake through exports and domestic use during July, leaving the higher closing balance recorded by MPOB.

Exports strengthen, biodiesel shipments multiply

Palm oil exports grew 14.50% to 1.39 million tonnes from 1.22 million tonnes in June. Oleochemical exports reached 265,198 tonnes against 255,098 tonnes, an increase MPOB put at 17.81%. Biodiesel exports jumped 496.77% to 28,745 tonnes from 4,817 tonnes, although the volumes remain small next to the main edible oil trade.

Two downstream lines declined. Palm kernel oil exports slipped 1.73% to 82,261 tonnes from 83,712 tonnes, and palm kernel cake exports, a livestock feed ingredient, fell 8.72% to 203,454 tonnes from 222,887 tonnes.

The export mix matters for how quickly the crude surplus clears. Processed grades leaving the country draw on the shrinking 1.20 million tonne pool of refined stock, while the 1.43 million tonnes of crude has to be worked through by domestic refineries or shipped out as CPO.

Imports halve

Combined imports of palm oil and processed palm oil fell 51.93% to 49,566 tonnes from 103,113 tonnes in June. Palm kernel oil imports moved in the opposite direction, rising 93.12% to 11,545 tonnes from 5,978 tonnes.

The drop in imports removes a source of feedstock that Malaysian refiners use to top up local supply, and coincides with the month's stronger domestic output. At 11,545 tonnes, the rise in palm kernel oil purchases is marginal in the overall balance.

MPOB's monthly release is one of the few near-real-time official readings on global vegetable oil supply and is followed by refiners, feed producers, biodiesel blenders and importers across the largest edible oil markets. July delivered higher output, higher exports and a heavier crude balance at the same time: shipping demand held up, but the country ended the month with more oil in tank than it started with.