MPOB August 2026 Report: Export Slump Pushes Malaysian Palm Oil Stocks to 2.82M Tonnes Amid Modest Output Growth

The latest performance figures released by the Malaysian Palm Oil Board (MPOB) for August 2026 point to an emerging supply-demand imbalance. A slowdown in key export shipments led to a notable buildup in domestic inventories, even as crude palm oil production saw modest seasonal expansion.

CPO Production Edges Up 1.39% Driven by Peninsular Malaysia and Sarawak

Crude Palm Oil (CPO) production in Malaysia rose by 1.39% month-on-month, reaching 1,817,499 tonnes compared to 1,792,596 tonnes in July (an addition of 24,903 tonnes).

• Peninsular Malaysia: Rose 2.52% to reach 1,039,236 tonnes.
• Sarawak: Expanded by 4.65% to 439,181 tonnes.
• Sabah: Bucked the trend, declining by 5.61% to 339,082 tonnes.

Ancillary production remained steady, with Palm Kernel output edging up 1.97% to 430,599 tonnes and Crude Palm Kernel Oil remaining virtually flat (+0.10%).

Palm Oil Stocks Swell 7.48% to 2.82 Million Tonnes

Total palm oil inventories (crude and processed) surged by 7.48% to 2,824,488 tonnes, up by nearly 197,000 tonnes from July:

• Crude Palm Oil Stocks: Jumped sharply by 15.20% to 1,645,570 tonnes, driven by significant buildups in Sabah (+18.04%) and Peninsular Malaysia (+17.31%).
• Processed Palm Oil Stocks: Contracted slightly by 1.71% to 1,178,918 tonnes, primarily dragged down by a 23.60% reduction in Sabah’s refined oil reserves.

Weak Export Demand Offsets Gains in Biodiesel and Kernel Oil

Malaysian palm oil exports faced headwinds in August, falling 7.50% (-104,915 tonnes) to 1,294,664 tonnes. The oleochemical segment also experienced softer demand, sliding 12.72% to 233,545 tonnes.

Conversely, downstream segments delivered mixed-to-positive momentum:

• Palm Kernel Oil Exports: Surged by 37.22% to 112,879 tonnes.
• Biodiesel Exports: Rebounded by 22.59%, climbing to 35,240 tonnes.
• Palm Kernel Cake: Gained 6.45% to hit 216,584 tonnes.

Pricing and Trade Flows

Fresh Fruit Bunch (FFB) farmgate pricing remained largely range-bound at RM 49.76 (1% OER equivalent), a fractional increase of 0.53% over July’s RM 49.50. On the import side, CPO imports stayed flat at zero, while processed palm oil inflows remained virtually unchanged at 49,524 tonnes (-0.09%).

Market Outlook:The August 2026 data reflects mounting supply pressure on Malaysian stockpiles as headline exports lost momentum. In the near term, global destination demand and competitive pricing against rival edible oils will be critical determinants in clearing excess inventories and setting price direction.

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