Indonesia prepares to execute B40 in January

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

B40 will need extra 3 mln tons feedstock, GAPKI says

Malaysia palm oil standard at greatest since mid-2022

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

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

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 costs are anticipated to stay elevated due to scheduled growth of the nation's biodiesel required, industry experts stated.

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

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

While Indonesia's output is anticipated to enhance, supply from in other places and of other veggie oils is seen tightening up.

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

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

'FRIGHTENING' PRICE SURGE

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

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

The existing palm oil premium has actually currently caused palm to lose market share against other oils, Mielke included.

oil prices are seen trading at around $950 to $1,050 per metric heap in 2025, McGill of Glenauk estimated.

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

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

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

Mielke and Mistry prompted Indonesia to

consider postponing

B40 application on issue about its impact on food consumers.

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

import task hike

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; Editing by John Mair, Jane Merriman and Daren Butler)