Malaysia's Palm Oil Stocks Surge, Prices Face Near-Term Pressure
Palm oil prices are expected to remain under pressure due to rising inventories in Malaysia and sluggish buying by India, the world's largest importer. Despite below-normal rainfall in Malaysia caused by El Niño, palm oil output rose month-on-month in September.
Malaysian stocks are likely to rise above three million metric tonnes by the end of this month, according to Tajgir Rahman, general manager at International Foodstuffs Co (IFFCO). This is a significant increase from an eight-month high of 2.82 million metric tons recorded in August.
Malaysian monthly inventories have only exceeded three million tonnes five times previously, and the last time stocks rose to this level in December 2025, Malaysian futures fell to around RM4,000 ringgit a tonne, compared to the current price of RM4,780.