Indonesia prepares to implement B40 in January

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

B40 will need additional 3 mln tons feedstock, GAPKI states

Malaysia palm oil criteria at greatest considering that mid-2022

India might withdraw import tax hike amid inflation, Mistry says

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

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 prices are expected to stay elevated due to scheduled growth of the nation's biodiesel required, industry experts said.

The palm oil benchmark price in Malaysia has risen more than 35% this year, lifted by slow output and 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 leading manufacturer Indonesia is expected to recover by 1.5 million metric tons compared to a projected drop of just over a million lots 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 company Oil World, stated he anticipates Indonesia's palm oil production to increase by as much as 2 million loads next year after a 2.5 million heap drop in 2024.

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

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 need a healing in palm in 2025 since combined exports of soya, sunflower and rapeseed oils are declining," Mielke stated.

'FRIGHTENING' PRICE SURGE

The rate rise in palm oil in the previous 7 weeks has actually been "frightening" for purchasers, Mielke said, including that it would rally by 10%-15% in January-March if Indonesia enforces the so-called B40 policy.

The Indonesia Palm Oil Association said extra feedstock of around 3 million heaps will be required for B40 execution, wearing down export supply.

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

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 greatest since mid-2022.

"Sentiment right now is red-hot and exceptionally bullish, we have to take care," said Dorab Mistry, director at Indian customer items company Godrej International.

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

Mielke and Mistry urged Indonesia to

think about delaying

B40 execution on concern about its effect on food consumers.

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

import responsibility walking

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; Editing by John Mair, Jane Merriman and Daren Butler)