Malaysia Palm Oil Stocks Hit Record 3.51 Million Tonnes as Exports Fall 12.13%

Kuala Lumpur — Malaysia’s palm oil inventories climbed 24.54% month on month to 3.51 million tonnes at the end of September 2026, exceeding the 3.45 million-tonne median estimate in a Bloomberg survey. Malaysian Palm Oil Board (MPOB) data reported by Bernama showed that a sharp production increase and weaker exports drove stocks above the previous record cited by market surveys.

Production surged while exports weakened

Crude palm oil production rose 16.48% to 2.11 million tonnes in September from 1.81 million tonnes in August. The result was broadly in line with the survey estimate of 2.11 million tonnes and marked the highest September output in the survey’s historical comparison.

Exports moved in the opposite direction. Palm oil shipments fell 12.13% to about 1.12 million tonnes from roughly 1.28 million tonnes in August, close to the survey expectation of 1.13 million tonnes. Imports increased 17.25% to 58,064 tonnes, while MPOB reported no crude palm oil imports during the month.

The composition of inventories also showed a broad build-up. Crude palm oil stocks increased 31.88% to 2.16 million tonnes, while processed palm oil stocks rose 14.33% to 1.34 million tonnes. MPOB also reported that Malaysian biodiesel exports dropped 91.69% month on month to 2,930 tonnes.

• End-stocks: 3.51 million tonnes, up 24.54% from 2.8 million tonnes.
• CPO production: 2.11 million tonnes, up 16.48% from 1.81 million tonnes.
• Palm oil exports: about 1.12 million tonnes, down 12.13%.
• Palm oil imports: 58,064 tonnes, up 17.25%.

Stocks came in above the market survey

Before the release, a Bloomberg survey of 10 plantation executives, traders and analysts had placed the median September stock estimate at 3.45 million tonnes, up about 22% from August. The actual 3.51 million tonnes therefore came in slightly higher than the survey median and above the previous 3.22 million-tonne record set in December 2018.

The report was released shortly before this article was prepared, so a reliable post-release move in the benchmark Bursa Malaysia crude palm oil futures contract was not yet available. Ahead of the data, however, the benchmark had fallen to around MYR 4,535 per tonne on 5 October from a September peak of MYR 5,049 as traders anticipated rising inventories. Readers can follow the latest contract movement on Media Biodiesel’s Malaysia FCPO price page.

What it means for Indonesia

Analysis: Malaysia’s record stock build is a near-term counterweight to the tighter regional supply outlook associated with Indonesia’s biodiesel policy. Reuters reported that analyst Dorab Mistry expected Indonesia’s 50% biodiesel blending mandate to tighten palm oil supplies and support prices, while higher energy prices were also encouraging biodiesel demand.

The September numbers show that Malaysia entered the final quarter with a much larger buffer: production growth outpaced exports, even as Malaysian domestic B15 use was estimated to add only around 22,000 tonnes of crude palm oil demand per month compared with the previous blend. For Indonesia, that means B50-related support for regional prices may compete in the near term with abundant Malaysian inventories and weaker export absorption. This is a market interpretation, not an official price forecast.