Malaysia’s August palm oil stockpiles jump 25% to 14-month peak


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KUALA LUMPUR — Malaysian palm oil

inventories in August climbed more than expected to their

highest in over a year, as production recovered strongly and

exports plunged, data released by the nation’s palm oil board

showed on Friday.

Stockpiles rose 25.3% from July to 1.87 million tonnes in

August — the highest since June last year, the Malaysian Palm

Oil Board’s (MPOB) data showed. That surpassed a Reuters poll

pegging a 16% rise.

Output at the world’s second-largest producer expanded 11.8%

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to a nine-month high of 1.7 million tonnes.

Exports tumbled 17.1% to 1.16 million tonnes, its lowest

since February.

Production came at the higher end of estimates due to

favorable weather, raising prospects of stocks reaching 2

million tonnes by year-end, said Sathia Varqa, co-founder of

Singapore-based Palm Oil Analytics.

“Supply outlook will be seen improving after months of tight

supply sentiments,” he said.

Stockpiles rose in surplus for the first time in 25 months,

and expect stocks to stay remain in surplus from September to

December year-on-year, Varqa added.

That could pressure Malaysia’s benchmark crude palm oil

prices which is trading near record highs hit in


The inventory also rose on lower domestic consumption, down

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27%, due to prolonged COVID-19 curbs and higher palm oil

imports, said Anilkumar Bagani, research head of Mumbai-based

vegetable oils broker Sunvin Group.

MPOB data showed imports jumped 68% to 91,408 tonnes.

Following is a breakdown of the Malaysian Palm Oil Board

figures and Reuters estimates for August (volumes in tonnes)


Aug 2021 Aug 2021 poll July 2021* Aug 2020

Output 1,702,430 1,692,960 1,522,703 1,863,309

Stocks 1,874,746 1,739,987.5 1,496,463 1,704,060

Exports 1,162,812 1,235,161 1,402,042 1,582,359

Imports 91,408 50,000 54,381 32,311

*indicates revised figures by the Malaysian Palm Oil Board

(Reporting by Mei Mei Chu; Editing by Clarence Fernandez and