Indonesia plans to implement B40 in January

In that case, rates might rally 10%-15% in Jan-March, Mielke states

B40 will require additional 3 mln heaps feedstock, GAPKI says

Malaysia palm oil criteria at highest since mid-2022

India might withdraw import tax hike amid inflation, Mistry states

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

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, but prices are expected to remain elevated due to planned growth of the country's biodiesel required, market experts stated.

The palm oil criteria price in Malaysia has risen 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 leading manufacturer Indonesia is anticipated to recuperate by 1.5 million metric lots compared with an estimated drop of just over a million tons this year, Julian McGill, managing director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research study 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 improve, supply from somewhere else and of other veggie oils is seen tightening.

Palm oil output in neighbouring Malaysia is expected to dip somewhat next year after increasing by an approximated 1 million loads in 2024.

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

'FRIGHTENING' PRICE SURGE

The cost rise in palm oil in the past seven weeks has been "frightening" for buyers, Mielke stated, including that it would rally by 10%-15% in January-March if Indonesia implements the so-called B40 policy.

The Indonesia Palm Oil Association stated extra feedstock of around 3 million loads will be needed for B40 execution, supply.

The current palm oil premium has currently triggered palm to lose market share versus other oils, Mielke added.

Malaysian palm oil prices 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 right now is red-hot and extremely bullish, we need to beware," said Dorab Mistry, director at Indian durable goods company Godrej International.

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

Mielke and Mistry advised Indonesia to

consider postponing

B40 execution on concern about its effect on food consumers.

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

import responsibility 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