Malaysia's palm oil stocks hit a record 3.51 million tonnes in September

Malaysia's palm oil stocks climbed to their highest level on record at the end of September 2026. Malaysian Palm Oil Board (MPOB) data released on Monday, 12 October, showed total stocks rising 691,835 tonnes, or 24.54 per cent, to 3.51 million tonnes, from 2.8 million tonnes in August, The Edge Malaysia reported.

Finimize, citing the same data, reported that the level beat the previous record set in December 2018. Stocks have now risen for six months in a row.

Output up, exports down

Stocks are piling up because the country is producing more oil than it is selling abroad.

• Crude palm oil (CPO) output rose 16.48 per cent to 2,116,950 tonnes, from 1.81 million tonnes in August.
• Palm oil exports fell 12.13 per cent to about 1.12 million tonnes, from 1.29 million tonnes in August, according to Finimize. The Edge's report gave 1.22 million tonnes, which does not fit a 12.13 per cent fall.
• CPO stocks alone rose 31.88 per cent to 2.16 million tonnes. Processed palm oil stocks rose 14.33 per cent to 1.34 million tonnes.
• Biodiesel exports plunged 91.69 per cent to 2,930 tonnes. Oleochemical exports rose 2.62 per cent to 239,723 tonnes.

Higher than expected

The stock figure came in above market forecasts. A Reuters poll before the release had expected stocks of around 3.37 million tonnes, output of 2.10 million tonnes and exports of 1.20 million tonnes, according to Finimize.

Prices were already under pressure after the budget

On Friday, 9 October, the benchmark palm oil contract on Bursa Malaysia Derivatives fell RM69, or 1.48 per cent, to RM4,592 a tonne, Investing.com reported. Traders had hoped Budget 2027 would waive the export duty on CPO, making Malaysian palm oil more competitive against Indonesia's. Instead, the government announced only support measures focused on replanting aid for smallholders.

According to Finimize, a surplus is usually cleared through prices, and prices can only stay strong if exports pick up or production slows.

What smallholders get

Budget 2027 measures for oil palm, according to a Bernama report carried by The Star:

• RM200 million in easy financing for smallholders' oil palm replanting costs, for land of up to 40 hectares.
• Smallholders pay 2 per cent interest, and the government covers the rest.
• Repayments are deferred for four years while the new trees mature.

A summary of other Budget 2027 measures is in Budget 2027, what changes for your wallet.

Sources

• The Edge Malaysia, Malaysia’s total palm oil stocks up 24.5% to 3.5 mil tonnes in September — MPOB
• Finimize, Malaysia’s Palm Oil Stockpiles Set A New Record In September
• Investing.com, Malaysian palm oil futures fall after no export duty waiver
• The Star, Budget 2027: Govt introducing RM200mil in easy financing for oil palm replanting
• The Star, Malaysia's total palm oil stocks rise 7.48% to 2.82mil tonnes in August - MPOB