Indonesia prepares to implement B40 in January

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

B40 will need extra 3 mln heaps feedstock, GAPKI states

Malaysia palm oil benchmark at greatest given that mid-2022

India might withdraw import tax trek in the middle of inflation, Mistry states

(Adds analyst remarks, palm oil standard cost)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recover in 2025 after an expected drop this year, but prices are anticipated to stay raised due to planned growth of the country's biodiesel required, industry experts stated.

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

Palm oil output next year in leading manufacturer Indonesia is expected to recuperate by 1.5 million metric tons compared to a projected 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, said he expects Indonesia's palm oil production to increase by as much as 2 million lots next year after a 2.5 million lot drop in 2024.

While Indonesia's output is forecast to improve, supply from elsewhere and of other vegetable oils is seen tightening.

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

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

'FRIGHTENING' PRICE SURGE

The price rise in palm oil in the past 7 weeks has been "frightening" for buyers, 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 extra feedstock of around 3 million heaps will be required for B40 implementation, wearing down export supply.

The existing palm oil premium has actually currently triggered 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 lot 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 extremely bullish, we need to be mindful," stated Dorab Mistry, director at Indian durable goods business Godrej International.

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

Mielke and Mistry urged Indonesia to

consider delaying

B40 execution on issue about its effect on food customers.

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

import task hike

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