Indonesia prepares to carry out B40 in January

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

B40 will need additional 3 mln tons feedstock, GAPKI states

Malaysia palm oil standard at highest because mid-2022

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

(Adds expert comments, updates Malaysia's palm oil standard price)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recuperate in 2025 after an anticipated drop this year, but rates are expected to stay elevated due to organized expansion of the country's biodiesel required, market experts said.

The palm oil standard price in Malaysia has actually risen 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 decrease fuel imports.

Palm oil output next year in top producer Indonesia is expected to recuperate by 1.5 million metric heaps compared with an estimated drop of simply 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 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 ton drop in 2024.

While Indonesia's output is forecast to enhance, provide from in other places and of other veggie oils is seen tightening up.

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

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

'FRIGHTENING' PRICE SURGE

The price rise in palm oil in the past 7 weeks has actually been "frightening" for buyers, Mielke stated, including 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 heaps will be needed for B40 application, deteriorating export supply.

The existing palm oil premium has actually currently caused 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 load in 2025, McGill of Glenauk estimated.

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

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

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

Mielke and Mistry urged Indonesia to

think about postponing

B40 execution on issue about its effect on food customers.

Meanwhile, Mistry palm oil importer India to withdraw its

import duty hike

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