Indonesia prepares to execute B40 in January

In that case, rates may rally 10%-15% in Jan-March, Mielke says

B40 will need extra 3 mln lots feedstock, GAPKI states

Malaysia palm at highest because mid-2022

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

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

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recover in 2025 after an expected drop this year, but costs are anticipated to remain elevated due to planned growth of the country's biodiesel required, market experts stated.

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

Palm oil output next year in leading manufacturer Indonesia is anticipated to recover by 1.5 million metric tons compared with a projected drop of simply over a million lots this year, Julian McGill, handling director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research company 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 anticipated to improve, supply from in other places and of other vegetable oils is seen tightening up.

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

"We would require a recovery in palm in 2025 due to the fact that 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 actually been "frightening" for purchasers, 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 said additional feedstock of around 3 million lots will be needed for B40 execution, deteriorating export supply.

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

Malaysian palm oil rates are seen trading at around $950 to $1,050 per metric ton in 2025, McGill of Glenauk estimated.

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

"Sentiment today is red-hot and incredibly bullish, we need to beware," said Dorab Mistry, director at Indian customer goods company Godrej International.

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

Mielke and Mistry prompted Indonesia to

think about postponing

B40 application on issue about its influence on food customers.

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

import duty 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