Indonesia prepares to execute B40 in January

Because case, prices might rally 10%-15% in Jan-March, Mielke states

B40 will need additional 3 mln loads feedstock, GAPKI states

Malaysia palm oil criteria at highest since mid-2022

India may withdraw import tax hike in the middle of inflation, Mistry states

(Adds expert remarks, updates Malaysia's palm oil standard cost)

By Bernadette Christina

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

The palm oil benchmark rate in Malaysia has risen more than 35% this year, lifted by slow output and Indonesia's strategy to increase the obligatory domestic biodiesel mix to 40% in January from 35% now in an effort to minimize fuel imports.

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

Thomas Mielke, head of Hamburg-based research study company Oil World, said he anticipates Indonesia's palm oil production to increase by as much as 2 million heaps next year after a 2.5 million ton drop in 2024.

While Indonesia's output is anticipated to improve, supply from in other places and of other veggie oils is seen tightening.

Palm oil output in neighbouring Malaysia is expected to dip somewhat next year after increasing by an approximated 1 million loads in 2024.

"We would need a recovery in palm in 2025 since combined exports of soya, sunflower and rapeseed oils are decreasing," Mielke said.

'FRIGHTENING' PRICE SURGE

The cost surge in palm oil in the previous seven weeks has 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 tons will be needed for B40 implementation, deteriorating export supply.

The current palm oil premium has actually already triggered palm to lose market share versus other oils, Mielke included.

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

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

"Sentiment today is red-hot and exceptionally bullish, we need to be cautious," stated Dorab Mistry, director at Indian customer goods company Godrej International.

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

Mielke and Mistry prompted Indonesia to

consider postponing

B40 implementation on concern about its influence on food customers.

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

import duty 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