Indonesia prepares to carry out B40 in January

In that case, costs might rally 10%-15% in Jan-March, Mielke says

B40 will require extra 3 mln lots feedstock, GAPKI states

Malaysia palm oil benchmark at highest given that mid-2022

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

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

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 rates are expected to remain raised due to planned expansion of the nation's biodiesel required, market experts said.

The palm oil standard cost in Malaysia has risen more than 35% this year, raised 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 minimize fuel imports.

Palm oil output next year in leading manufacturer Indonesia is expected to recuperate by 1.5 million metric loads compared to an estimated drop of simply over a million loads 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 expects Indonesia's palm oil production to increase by as much as 2 million heaps next year after a 2.5 million load drop in 2024.

While Indonesia's output is anticipated to enhance, provide from elsewhere and of other vegetable oils is seen tightening up.

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

"We would require a healing in palm in 2025 due to the fact that combined exports of soya, sunflower and rapeseed oils are declining," .

'FRIGHTENING' PRICE SURGE

The price surge in palm oil in the past 7 weeks has been "frightening" for buyers, 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 heaps will be needed for B40 execution, deteriorating export supply.

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

Malaysian palm oil prices 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 given that mid-2022.

"Sentiment right now is red-hot and exceptionally bullish, we need to be cautious," stated Dorab Mistry, director at Indian durable goods business Godrej International.

He anticipated the Malaysian rate around 5,000 ringgit and above until June 2025.

Mielke and Mistry advised Indonesia to

think about delaying

B40 application on issue about its influence on food consumers.

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

import task walking

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