Indonesia prepares to execute B40 in January

Because case, rates may rally 10%-15% in Jan-March, Mielke states

B40 will need extra 3 mln lots feedstock, GAPKI says

Malaysia palm oil criteria at greatest because mid-2022

India may withdraw import tax hike amid inflation, Mistry states

(Adds expert remarks, updates Malaysia's palm oil benchmark price)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recuperate in 2025 after an anticipated drop this year, however costs are anticipated to remain raised due to organized growth of the country's biodiesel required, market analysts stated.

The palm oil standard cost in Malaysia has actually risen more than 35% this year, raised by slow output and Indonesia's plan to increase the obligatory domestic biodiesel mix to 40% in January from 35% now in an effort to reduce fuel imports.

Palm oil output next year in leading producer Indonesia is anticipated to recover by 1.5 million metric heaps compared to an estimated drop of simply over a million heaps this year, Julian McGill, managing director at Glenauk Economics, told the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research firm Oil World, stated he anticipates Indonesia's palm oil production to increase by as much as 2 million lots next year after a 2.5 million lot drop in 2024.

While is forecast to enhance, supply from in other places and of other veggie oils is seen tightening up.

Palm oil output in neighbouring Malaysia is anticipated to dip a little next year after increasing by an approximated 1 million heaps in 2024.

"We would require a healing in palm in 2025 due to the fact that combined exports of soya, sunflower and rapeseed oils are decreasing," Mielke stated.

'FRIGHTENING' PRICE SURGE

The rate surge in palm oil in the past 7 weeks has actually been "frightening" for purchasers, Mielke stated, including that it would rally by 10%-15% in January-March if Indonesia imposes the so-called B40 policy.

The Indonesia Palm Oil Association said extra feedstock of around 3 million lots will be needed for B40 implementation, eroding export supply.

The existing palm oil premium has already triggered palm to lose market share against other oils, Mielke added.

Malaysian palm oil costs are seen trading at around $950 to $1,050 per metric heap in 2025, McGill of Glenauk estimated.

Benchmark Malaysian palm oil touched 5,104 ringgit ($1,165.30) on Friday, the greatest because mid-2022.

"Sentiment right now is red-hot and incredibly bullish, we have to take care," stated Dorab Mistry, director at Indian durable goods company Godrej International.

He forecast the Malaysian rate around 5,000 ringgit and above until June 2025.

Mielke and Mistry urged Indonesia to

think about delaying

B40 application on concern about its effect on food consumers.

Meanwhile, Mistry expected top palm oil importer India to withdraw its

import task hike

imposed from September after elections in the state of Maharashtra in November. ($1 = 4.3800 ringgit) (Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy