India Buys 301,000 Tonnes of Malaysian Palm Oil in July, Highest in Nine Months

India’s palm oil imports from Malaysia surged 16 per cent in July 2025 to 301,000 tonnes, the highest in nine months. NSTP/DANIAL SAAD

India's palm oil imports from Malaysia surged 16 per cent in July 2025 to 301,000 tonnes, the highest in nine months.

This is even as Malaysia's palm oil inventories climbed to a 19-month high of 2.11 million tonnes on slower pace of exports, according to Malaysian Palm Oil Council (MPOC).

Despite recent fluctuations to RM4,500 per tonne, MPOC expects crude palm oil prices to hold above RM4,300 in the near term.

"Tightening soybean oil export availability, combined with the prospect of slower palm oil supply growth relative to biodiesel demand should provide continued support.

"However, the sustainability of palm oil's price strength will depend on its competitiveness against soybean oil in the export market," it said in a statement.

MPOC said while domestic palm oil inventories have been increasing since February, supply pressures are still relatively contained.

It added that Indonesia's biodiesel mandate has been steadily absorbing over one million tonnes of palm oil each month since February, which has helped avert a stockpile build-up there.

"The biofuel market has exerted a strong influence on the vegetable oil market in July and August.

"Rising US domestic feedstock requirements have pushed US soybean oil prices to a significant premium in August - US$131 per tonne above Argentine soybean oil and US$148 per tonne above Malaysian palm olein.

"The strength in US soybean oil prices has lifted the broader vegetable oils complex," it added.

On the supply front, the council highlighted a shift in Malaysia's production trend, with palm oil output in 2024 reaching its peak unusually early at 1.89 million tonnes in August, compared with the typical peak in October.

Peninsular Malaysia registered an exceptionally strong performance in July 2025, producing 1.12 million tonnes, the highest July output in a decade and also the region's strongest monthly production in 10 years.

MPOC said this indicates production in Peninsular Malaysia may have already peaked in July, or could peak in August, before tapering off from September onwards.

"While Sabah and Sarawak have yet to reach their peak months, any downturn in Peninsular Malaysia from September is expected to cap national production growth for the rest of the year.

"As a result, Malaysia's palm oil stocks are unlikely to see a major built-up in September and October," MPOC said.

Source: www.nst.com.my