Malaysia’s palm oil stocks soared to their highest level since September 2024 in May, as a sharp rise in production and imports outpaced strong export growth, the Malaysian Palm Oil Board (MPOB) reported Tuesday.

Stockpiles grew by 6.65% month-on-month to 1.99 million metric tons—marking the third consecutive monthly increase. Crude palm oil production rose 5.05% to 1.77 million tons, while exports surged 25.6% to 1.39 million tons, the highest volume since November 2024. Imports also increased to 68,971 tons, up from 58,292 tons in April.

“The MPOB report is slightly bullish for palm oil, as the market was already trading with the expectation of stocks rising to 2 million tons,” said Anilkumar Bagani, research head at Sunvin Group, a Mumbai-based vegetable oil brokerage.

He added, “Unless production rises with greater force in the coming months, we expect demand, particularly from top buyer India, to support the market.”

India recently halved its basic import tax on crude palm oil to 10%, aiming to ease domestic food prices and support local refiners. A dealer with a global trade house noted that palm oil has been trading at a discount to rival soyoil, attracting more buyers during peak production.

The positive export trend, combined with India’s tax cuts, could help keep palm oil demand strong even as stock levels rise.