Indonesia plans to implement B40 in January

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

B40 will need additional 3 mln loads feedstock, GAPKI states

Malaysia palm oil standard at greatest considering that mid-2022

India might withdraw import tax hike amid inflation, Mistry says

(Adds analyst comments, updates Malaysia's palm oil benchmark price)

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 rates are anticipated to remain elevated due to organized growth of the nation's biodiesel required, industry experts stated.

The palm oil standard cost in Malaysia has actually increased more than 35% this year, lifted by sluggish output and Indonesia's plan to increase the compulsory domestic biodiesel blend to 40% in January from 35% now in an effort to reduce fuel imports.

Palm oil output next year in top manufacturer Indonesia is anticipated to recover by 1.5 million metric loads compared to a projected drop of just over a million heaps this year, Julian McGill, managing director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research firm 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 forecast to enhance, provide from elsewhere and of other vegetable oils is seen tightening.

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

"We would require a healing in palm in 2025 because combined exports of soya, sunflower and rapeseed oils are decreasing," Mielke stated.

'FRIGHTENING' PRICE SURGE

The cost surge in palm oil in the past seven weeks has actually been "frightening" for buyers, Mielke said, adding that it would rally by 10%-15% in January-March if Indonesia enforces the so-called B40 policy.

The Indonesia Palm Oil Association said additional feedstock of around 3 million tons will be needed for B40 implementation, wearing down export supply.

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

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

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

"Sentiment today is red-hot and incredibly bullish, we need to be cautious," said Dorab Mistry, director at Indian customer products business Godrej International.

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

Mielke and Mistry urged Indonesia to

consider postponing

B40 application on issue about its influence on food customers.

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

import duty 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)