Malaysia Aug. palm oil reserves +2.8% m/m to 2.17m tons: survey

Malaysia Aug. palm oil reserves +2.8% m/m to 2.17m tons: survey

Malaysia's palm oil reserves are projected to rise by 2.8% month-over-month in August, according to a Reuters survey. This increase is expected to bring the reserves to 2.17 million metric tons, marking the sixth consecutive month of growth in stockpiles.

The survey, conducted among nine traders, planters, and analysts, predicts that production will climb to 1.86 million metric tons, up 2.5% from July. This is the highest level since August 2023. Meanwhile, exports are expected to increase by 10.7% to 1.45 million metric tons, reaching a nine-month high. The Malaysian Palm Oil Board (MPOB) is scheduled to release its monthly data on September 10.

Paramalingam Supramaniam, director at Selangor-based brokerage Pelindung Bestari, attributed the rise in production to the recovery in demand, despite older trees and a lack of replanting. The increase in exports is also driven by the growing demand, particularly from Indian buyers who are taking advantage of the discount in palm oil prices compared to soy oil.

Crude palm oil prices are currently trading at a discount to soy oil prices, prompting Indian buyers to increase their purchases for the upcoming festival season. The discount has been a significant factor in the rising demand for palm oil.

The survey's estimates for August include production of 1.86 million metric tons, exports of 1.45 million metric tons, imports of 60,000 metric tons, and closing stocks of 2.199 million metric tons. Based on these estimates, Malaysia's domestic consumption in August is projected to be 382,875 tons.

The Malaysian Palm Oil Board will release its official data on September 10, providing further insights into the market dynamics.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UP0IG:0-malaysia-s-palm-oil-stocks-seen-rising-for-sixth-straight-month-in-august/