Indonesia plans to execute B40 in January

In that case, rates might rally 10%-15% in Jan-March, Mielke states

B40 will need additional 3 mln lots feedstock, GAPKI says

Malaysia palm oil standard at highest since mid-2022

India might withdraw import tax trek amid inflation, Mistry says

(Adds analyst 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 anticipated drop this year, but rates are expected to remain elevated due to planned expansion of the country's biodiesel required, market analysts 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 necessary domestic biodiesel blend to 40% in January from 35% now in an effort to lower fuel imports.

Palm oil output next year in leading manufacturer Indonesia is anticipated to recuperate by 1.5 million metric loads compared with a projected drop of simply over a million lots this year, Julian McGill, managing director at Glenauk Economics, told 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 tons next year after a 2.5 million ton drop in 2024.

While Indonesia's output is anticipated to enhance, supply from somewhere else and of other veggie oils is seen tightening.

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

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

'FRIGHTENING' PRICE SURGE

The rate surge in palm oil in the previous 7 weeks has been "frightening" for purchasers, Mielke stated, adding that it would rally by 10%-15% in January-March if Indonesia imposes the B40 policy.

The Indonesia Palm Oil Association said extra feedstock of around 3 million lots will be needed for B40 implementation, wearing down export supply.

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

Malaysian palm oil costs 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 highest because mid-2022.

"Sentiment right now is red-hot and exceptionally bullish, we have to beware," said Dorab Mistry, director at Indian durable goods company Godrej International.

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

Mielke and Mistry prompted Indonesia to

think about delaying

B40 execution on concern about its effect on food consumers.

Meanwhile, Mistry expected top 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