Indonesia prepares to carry out B40 in January

Because case, rates might rally 10%-15% in Jan-March, Mielke says

B40 will require additional 3 mln tons feedstock, GAPKI says

Malaysia palm oil standard at greatest since mid-2022

India might withdraw import tax hike amid inflation, Mistry says

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

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recover in 2025 after an anticipated drop this year, however prices are anticipated to remain elevated due to planned expansion of the nation's biodiesel mandate, industry experts stated.

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

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

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

While Indonesia's output is anticipated to enhance, supply from somewhere else and of other vegetable oils is seen tightening up.

Palm oil output in neighbouring Malaysia is expected to dip somewhat next year after increasing by an estimated 1 million loads 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 surge in palm oil in the past seven weeks has actually been "frightening" for purchasers, Mielke stated, adding that it would rally by 10%-15% in January-March if Indonesia imposes the so-called B40 policy.

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

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

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

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

"Sentiment today is red-hot and extremely bullish, we have to beware," said Dorab Mistry, director at Indian durable goods business Godrej International.

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

Mielke and Mistry advised Indonesia to

consider postponing

B40 implementation on concern about its effect on food consumers.

Meanwhile, Mistry expected leading palm oil to withdraw its

import responsibility walking

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