Indonesia prepares to implement B40 in January

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

B40 will need extra 3 mln lots feedstock, GAPKI states

Malaysia palm oil criteria at greatest because mid-2022

India may withdraw import tax trek amid inflation, Mistry says

(Adds analyst remarks, updates Malaysia's palm oil benchmark cost)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recuperate in 2025 after an expected drop this year, however rates are anticipated to stay elevated due to organized growth of the nation's biodiesel required, industry analysts stated.

The palm oil criteria cost in Malaysia has actually risen more than 35% this year, lifted by slow output and Indonesia's plan to increase the obligatory domestic biodiesel mix to 40% in January from 35% now in an effort to reduce fuel imports.

Palm oil output next year in top producer Indonesia is expected to recover by 1.5 million metric loads compared with an estimated drop of just 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 study firm Oil World, said he expects Indonesia's palm oil production to increase by as much as 2 million heaps next year after a 2.5 million lot drop in 2024.

While Indonesia's output is forecast to enhance, provide from in other places and of other vegetable oils is seen tightening.

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

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

'FRIGHTENING' PRICE SURGE

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

The Indonesia Palm Oil Association stated extra feedstock of around 3 million lots will be required for B40 implementation, wearing down export supply.

The current palm oil premium has currently caused palm to lose market share against 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 estimated.

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

"Sentiment today is red-hot and exceptionally bullish, we need to take care," said Dorab Mistry, director at Indian customer products company Godrej International.

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

Mielke and Mistry prompted Indonesia to

think about postponing

B40 application on issue about its effect on food consumers.

Meanwhile, Mistry anticipated leading palm oil to withdraw its

import duty 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