Indonesia plans to execute B40 in January

Because case, prices might rally 10%-15% in Jan-March, Mielke says

B40 will require extra 3 mln heaps feedstock, GAPKI says

Malaysia palm oil standard at greatest because mid-2022

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

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

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recuperate in 2025 after an expected drop this year, but prices are expected to stay elevated due to scheduled growth of the country's biodiesel required, market analysts stated.

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

Palm oil output next year in top producer Indonesia is expected to recuperate by 1.5 million metric tons compared with a projected drop of just over a million heaps 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, 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 enhance, provide from somewhere else and of other vegetable oils is seen tightening.

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

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

'FRIGHTENING' PRICE SURGE

The cost rise in palm oil in the past 7 weeks has 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 additional feedstock of around 3 million tons will be required for B40 execution, eroding export supply.

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

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

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 extremely bullish, we have to be careful," stated Dorab Mistry, director at Indian customer products company Godrej International.

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

Mielke and Mistry prompted Indonesia to

consider delaying

B40 execution on issue about its influence on food customers.

Meanwhile, Mistry anticipated top 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; Editing by John Mair, Jane Merriman and Daren Butler)