Indonesia prepares to execute B40 in January

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

B40 will need extra 3 mln tons feedstock, GAPKI says

Malaysia palm oil criteria at highest since mid-2022

India may withdraw import tax trek amid inflation, Mistry states

(Adds analyst comments, updates Malaysia's palm oil benchmark 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, however prices are anticipated to stay raised due to scheduled growth of the country's biodiesel required, market experts said.

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

Palm oil output next year in top manufacturer Indonesia is anticipated to recover by 1.5 million metric lots compared to 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 study company Oil World, stated he anticipates Indonesia's palm oil production to increase by as much as 2 million lots next year after a 2.5 million heap drop in 2024.

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

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

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

'FRIGHTENING' PRICE SURGE

The rate surge in palm oil in the previous 7 weeks has actually been "frightening" for buyers, Mielke stated, 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 needed for B40 execution, wearing down export supply.

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

Malaysian palm oil prices are seen trading at around $950 to $1,050 per metric lot in 2025, McGill of Glenauk approximated.

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

"Sentiment today is red-hot and exceptionally 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 up until June 2025.

Mielke and Mistry prompted Indonesia to

think about postponing

B40 execution on issue about its effect on food customers.

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

import task walking

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