Indonesia prepares to execute B40 in January

Because case, costs may rally 10%-15% in Jan-March, Mielke says

B40 will require extra 3 mln lots feedstock, GAPKI states

Malaysia palm oil benchmark at greatest considering that mid-2022

India may withdraw import tax trek amidst inflation, Mistry states

(Adds expert comments, updates Malaysia's palm oil standard rate)

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 expected to stay elevated due to organized growth of the country's biodiesel mandate, market analysts stated.

The palm oil criteria rate in Malaysia has increased more than 35% this year, raised by sluggish output and Indonesia's plan to increase the mandatory domestic biodiesel mix to 40% in January from 35% now in an effort to lower fuel imports.

Palm oil output next year in top manufacturer Indonesia is expected to recover by 1.5 million metric loads 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 study company Oil World, stated he expects Indonesia's palm oil production to increase by as much as 2 million lots next year after a 2.5 million heap drop in 2024.

While Indonesia's output is anticipated to improve, provide from elsewhere and of other veggie oils is seen tightening up.

Palm oil output in neighbouring Malaysia is to dip slightly next year after increasing by an estimated 1 million heaps in 2024.

"We would require a healing in palm in 2025 since combined exports of soya, sunflower and rapeseed oils are declining," Mielke said.

'FRIGHTENING' PRICE SURGE

The rate rise in palm oil in the previous seven weeks has actually been "frightening" for buyers, Mielke said, including that it would rally by 10%-15% in January-March if Indonesia implements the so-called B40 policy.

The Indonesia Palm Oil Association stated additional feedstock of around 3 million loads will be required for B40 application, wearing down export supply.

The present palm oil premium has actually already caused palm to lose market share against other oils, Mielke added.

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

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

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

He forecast the Malaysian price around 5,000 ringgit and above till June 2025.

Mielke and Mistry advised Indonesia to

consider delaying

B40 execution on concern about its influence on food customers.

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

import task walking

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; Editing by John Mair, Jane Merriman and Daren Butler)