Kuala lumpur: Malaysia’s palm oil exports in June 2025 remained elevated at 1.26 million tonnes, surpassing the figures from previous years-1.19 million tonnes in June 2022, 1.17 million tonnes in June 2023, and 1.21 million tonnes in June 2024.
According to BERNAMA News Agency, while exports increased, palm oil inventories in Malaysia surged to an 18-month high of 2.03 million tonnes in the same month. The Malaysian Palm Oil Council (MPOC) highlighted this trend in a recent statement.
In the first half of 2025, Kenya emerged as Malaysia’s second-largest palm oil buyer, surpassing the EU27 countries by 21,000 tonnes and China by 117,000 tonnes. Kenya accounted for 30 percent of Malaysia’s total palm oil exports to Sub-Saharan Africa, with annual imports from Malaysia expected to reach 1.3 million tonnes. The growth in Kenya’s market is largely attributed to rising domestic consumption, with over 90 percent of imports being used in food applications.
Looking ahead, crude palm oil (CPO) prices are anticipated to remain firm, trading between RM4,100 and RM4,300 per tonne in the coming month. This is supported by festive demand from India and elevated US soybean oil prices. However, global vegetable oil prices may face limitations due to abundant oilseed supplies, particularly soybeans.
The global vegetable oil market has seen a rebound from early-year losses, led by a 19 percent increase in soybean oil since January, outpacing gains in rapeseed oil and palm oil. The US biofuel policy announced in mid-June is expected to bolster demand for domestically produced feedstocks, enhancing the price competitiveness of palm oil.
Consequently, Malaysian palm oil exports to India have significantly rebounded since April, reducing the decline experienced in the first quarter of 2025. India’s monthly imports of Malaysian palm oil exceeded 250,000 tonnes in both May and June. This trend is likely to continue into the third quarter, driven by restocking ahead of the Diwali festival in mid-October and favorable prices.
India is expected to import about 2.9 million tonnes of palm oil in the third quarter to meet festive season demand, providing continued support for palm oil prices, according to MPOC.