Indonesia prepares to execute B40 in January

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

B40 will need additional 3 mln lots feedstock, GAPKI says

Malaysia palm oil criteria at highest because mid-2022

India may withdraw import tax hike amidst inflation, Mistry says

(Adds expert remarks, updates Malaysia's palm oil standard rate)

By Bernadette Christina

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

The palm oil criteria rate in Malaysia has actually risen more than 35% this year, raised by slow output and Indonesia's strategy 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 top manufacturer Indonesia is expected to recuperate by 1.5 million metric tons compared to an approximated drop of just 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 improve, provide 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 approximated 1 million lots 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 cost surge in palm oil in the past 7 weeks has actually been "frightening" for purchasers, Mielke stated, adding that it would rally by 10%-15% in January-March if Indonesia implements the so-called B40 policy.

The Indonesia Palm Oil Association stated additional feedstock of around 3 million tons will be needed for B40 execution, deteriorating export supply.

The existing palm oil premium has already caused 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 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 extremely bullish, we need to beware," said Dorab Mistry, director at Indian consumer goods company Godrej International.

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

Mielke and Mistry prompted Indonesia to

think about delaying

B40 implementation on concern about its influence on food consumers.

Meanwhile, Mistry expected 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