Indonesia prepares to implement B40 in January

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

B40 will need additional 3 mln loads feedstock, GAPKI states

Malaysia palm oil standard at highest considering that mid-2022

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

(Adds expert remarks, updates Malaysia's palm oil criteria rate)

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, but prices are anticipated to remain elevated due to scheduled expansion of the nation's biodiesel required, market experts stated.

The palm oil benchmark cost in Malaysia has actually increased more than 35% this year, raised by sluggish output and Indonesia's strategy to increase the mandatory domestic biodiesel mix to 40% in January from 35% now in an effort to minimize fuel imports.

Palm oil output next year in leading manufacturer Indonesia is anticipated to recover by 1.5 million metric lots compared to an approximated drop of simply over a million heaps 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 lots next year after a 2.5 million ton drop in 2024.

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

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

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

'FRIGHTENING' PRICE SURGE

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

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

The present palm oil premium has actually currently caused palm to lose market share versus other oils, Mielke added.

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 considering that mid-2022.

"Sentiment right now is red-hot and incredibly bullish, we need to take care," said Dorab Mistry, director at Indian consumer items business Godrej International.

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

Mielke and Mistry prompted Indonesia to

consider delaying

B40 application on issue about its influence on food customers.

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

import duty 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