Malaysia’s palm oil stockpiles are expected to remain elevated in the coming months, after hitting a 19-month high of 2.11 million tonnes in July, analysts have said.
RHB Investment Bank projects output to keep climbing towards the industry’s peak season, with production likely to push stock levels above the 2-million-tonne mark. While demand could improve due to crude palm oil (CPO) trading at a steep discount to rival oils, the bank anticipates prices will dip in the third quarter before rebounding in the fourth.
Hong Leong Investment Bank also expects the upward trend in stockpiles to persist into August, citing seasonally higher yields and reduced price competitiveness that could limit exports.
Maybank Investment Bank predicts both Malaysia and Indonesia will record stronger palm oil production in 2025. It warned that sustained high output over the next two to three months is likely to keep CPO prices subdued in the short term to encourage demand.