Indonesia prepares to implement B40 in January

In that case, costs might rally 10%-15% in Jan-March, Mielke says

B40 will need extra 3 mln loads feedstock, GAPKI says

Malaysia palm oil criteria at highest because mid-2022

India might withdraw import tax hike amid inflation, Mistry says

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

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recover in 2025 after an anticipated drop this year, but rates are anticipated to stay raised due to organized expansion of the country's biodiesel required, industry analysts stated.

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

Palm oil output next year in top producer Indonesia is expected to recover by 1.5 million metric loads compared to an estimated drop of just over a million tons this year, Julian McGill, handling director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

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

While Indonesia's output is anticipated to improve, 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 estimated 1 million heaps in 2024.

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

'FRIGHTENING' PRICE SURGE

The rate rise in palm oil in the previous 7 weeks has actually been "frightening" for buyers, Mielke stated, adding that it would rally by 10%-15% in January-March if Indonesia imposes the B40 policy.

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

The present palm oil premium has currently caused 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 approximated.

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

"Sentiment today is red-hot and exceptionally bullish, we need to take care," stated Dorab Mistry, director at Indian consumer goods business Godrej International.

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

Mielke and Mistry prompted Indonesia to

think about postponing

B40 application on issue about its effect on food customers.

Meanwhile, Mistry anticipated 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