Indonesia prepares to carry out B40 in January

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

B40 will require additional 3 mln loads feedstock, GAPKI says

Malaysia palm oil standard at greatest given that mid-2022

India might withdraw import tax trek amid inflation, Mistry says

(Adds analyst remarks, updates Malaysia's 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 anticipated drop this year, but rates are anticipated to remain elevated due to planned expansion of the country's biodiesel required, industry experts said.

The palm oil benchmark rate in Malaysia has actually risen more than 35% this year, lifted by sluggish output and Indonesia's strategy to increase the necessary domestic biodiesel mix to 40% in January from 35% now in an effort to decrease fuel imports.

Palm oil output next year in leading manufacturer Indonesia is anticipated to recuperate by 1.5 million metric loads compared with a projected drop of just over a million lots this year, Julian McGill, handling director at Glenauk Economics, told 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 loads next year after a 2.5 million load drop in 2024.

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

output in neighbouring Malaysia is anticipated to dip somewhat next year after increasing by an approximated 1 million loads 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 cost rise in palm oil in the previous 7 weeks has actually been "frightening" for purchasers, Mielke stated, including that it would rally by 10%-15% in January-March if Indonesia enforces the so-called B40 policy.

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

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

Malaysian palm oil costs 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 given that mid-2022.

"Sentiment today is red-hot and incredibly bullish, we need to be careful," stated Dorab Mistry, director at Indian durable goods business Godrej International.

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

Mielke and Mistry prompted Indonesia to

consider delaying

B40 application on concern about its effect on food consumers.

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

import responsibility 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