Malaysian Palm Oil Exports Drop 8% in August

Malaysian palm oil exports fell by approximately 8% in August 2026, dropping to 1.3 million tons from July levels. The decline resulted from weaker festival demand in India, where price-sensitive consumers shifted toward cheaper soy oil.

While exports dipped, production likely rose 2% to 1.8 million tons. This imbalance caused stockpiles to swell 6%, reaching their highest level since January. Despite the drop in export volume, palm oil prices climbed roughly 7% in the third quarter, approaching a two-year high.

The Malaysian Palm Oil Board is expected to release official data by September 10. The current price rally is driven by tightening global supply, as the Government of Indonesia diverts more oil toward biofuels and concerns grow that the El Niño weather pattern may reduce future production.