Indonesia prepares to carry out B40 in January

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

B40 will require additional 3 mln tons feedstock, GAPKI states

Malaysia palm oil criteria at greatest considering that mid-2022

India may withdraw import tax hike amidst inflation, Mistry says

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

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, but prices are expected to remain raised due to organized expansion of the nation's biodiesel required, market experts stated.

The palm oil standard cost in Malaysia has increased more than 35% this year, lifted by sluggish output and Indonesia's strategy to increase the necessary domestic biodiesel blend to 40% in January from 35% now in an effort to lower fuel imports.

Palm oil output next year in top manufacturer Indonesia is anticipated to recuperate by 1.5 million metric tons compared with an approximated drop of just over a million tons this year, Julian McGill, handling director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research World, said he expects Indonesia's palm oil production to increase by as much as 2 million loads next year after a 2.5 million load drop in 2024.

While Indonesia's output is forecast to improve, supply from elsewhere and of other veggie oils is seen tightening.

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

'FRIGHTENING' PRICE SURGE

The cost surge in palm oil in the past 7 weeks has actually been "frightening" for buyers, Mielke said, 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 tons will be required for B40 implementation, eroding export supply.

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

Malaysian palm 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 since mid-2022.

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

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

Mielke and Mistry urged Indonesia to

consider postponing

B40 execution on issue about its influence on food consumers.

Meanwhile, Mistry expected leading 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