Malaysia records large improvement in palm oil exports; exports to India highest in 11 months

Presently, palm oil is trading at a premium to soybean oil in the global market.

Malaysia’s palm oil exports have risen by 102,000 tonnes (+7.7% month-on-month) to 1.42mn tonnes in September. The largest improvement came from South Asia, where exports to India reached the highest in 11 months. Shipments to Sub-Saharan Africa, the Middle East and North Africa (MENA), the Americas and Central Asia have also registered increases during September 2025.

This latest economic data comes from Malaysian Palm Oil Council (MPOC), which also noted that despite export growth outpacing production, the stock for palm oil in the nation is, in fact, currently at its highest in 22 months. This, MPOC said, is likely, because domestic consumption has normalising to its usual range of 300,000 to 350,000 tonnes per month, while imports also rose by 20,000 tonnes (+33.9% month-on-month), further contributing to the stock buildup.

Presently, palm oil is trading at a premium to soybean oil in the global market, priced US$42 per tonne higher than soybean oil in Europe and US$26 higher in India as of mid-October.

Speculation over Indonesia’s potential implementation of the B50 biodiesel mandate remains a key factor supporting palm oil prices, MPOC stated.

A little background on this development - The B50 programme is estimated to require around 17mn tonnes of palm oil for blending – an increase of 3mn tonnes from the current B40 mandate, equivalent to roughly 35% of Indonesia’s palm oil production. The country also consumes around 10mn tonnes for food purposes, leaving only about 22n tonnes or less available for export if the B50 is implemented.

This would result in a notable decline in exportable supply, as Indonesia has historically exported between 24 and 28 million tonnes of palm oil annually over the past five years.

MPOC anticipates that palm oil prices are projected to hold steady above RM4,400 per tonne but market sentiment will remain cautious amid weak crude oil prices, high vegetable oil inventories in major consuming markets (such as China and India), US – China trade tensions, and a buildup of global soybean stocks.

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