Malaysia’s palm oil inventories rose 3.15% month on month to a record 3.62 million tonnes in October 2026, despite stronger exports, as production and opening stocks outweighed shipments. Analysts expect seasonal production declines, possible El Niño-related crop losses and stronger Indonesian biodiesel demand to tighten the balance heading into 2027.
The record stocks weigh on near-term palm oil prices, but lower seasonal output and stronger Indonesian biodiesel use could absorb supply and support prices later. The outlook points to near-term pressure followed by potential tightening in 2027.
After 513 past neutral policy events, Palm Oil moved a median 0.0% over 5 sessions (50% higher; middle half -1.6% to +1.4%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.