Indonesia prepares to carry out B40 in January

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

B40 will need additional 3 mln tons feedstock, GAPKI states

Malaysia palm oil benchmark at greatest since mid-2022

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

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

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recuperate in 2025 after an expected drop this year, however prices are expected to remain elevated due to planned growth of the nation's biodiesel mandate, industry analysts stated.

The palm oil standard price in Malaysia has actually risen more than 35% this year, raised by slow output and Indonesia's plan to increase the obligatory domestic biodiesel blend to 40% in January from 35% now in an effort to decrease fuel imports.

Palm oil output next year in top producer Indonesia is expected to recover by 1.5 million metric heaps compared with an estimated drop of simply over a million tons 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, stated he expects Indonesia's palm oil production to increase by as much as 2 million lots next year after a 2.5 million load drop in 2024.

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

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

"We would need a healing 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 price surge in palm oil in the previous seven weeks has been "frightening" for buyers, Mielke said, 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 heaps will be required for B40 implementation, wearing down export supply.

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

Malaysian palm oil rates 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 greatest because mid-2022.

"Sentiment today is red-hot and exceptionally bullish, we need to take care," said Dorab Mistry, director at Indian durable goods company Godrej International.

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

Mielke and Mistry advised Indonesia to

consider postponing

B40 implementation on concern about its effect on food consumers.

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

import responsibility 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)