Indonesia plans to execute B40 in January

Because case, costs may rally 10%-15% in Jan-March, Mielke states

B40 will require additional 3 mln tons feedstock, GAPKI says

Malaysia palm oil standard at highest given that mid-2022

India may withdraw import tax trek in the middle of inflation, Mistry states

(Adds analyst remarks, updates Malaysia's palm oil standard 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 anticipated to stay raised due to planned expansion of the country's biodiesel mandate, market experts said.

The palm oil standard price in Malaysia has actually risen more than 35% this year, lifted by slow output and Indonesia's plan to increase the mandatory domestic biodiesel blend to 40% in January from 35% now in an effort to decrease fuel imports.

Palm oil output next year in leading producer Indonesia is anticipated to recover by 1.5 million metric heaps compared to an approximated drop of simply over a million loads this year, Julian McGill, handling director at Glenauk Economics, told 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 tons next year after a 2.5 million lot drop in 2024.

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

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 recovery in palm in 2025 since combined exports of soya, sunflower and rapeseed oils are decreasing," Mielke said.

'FRIGHTENING' PRICE SURGE

The price surge in palm oil in the past 7 weeks has actually been "frightening" for buyers, Mielke said, including that it would rally by 10%-15% in January-March if Indonesia implements the so-called B40 policy.

The Indonesia Palm Oil Association stated extra feedstock of around 3 million lots will be required for B40 implementation, 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 prices are seen trading at around $950 to $1,050 per metric load in 2025, McGill of Glenauk estimated.

Benchmark Malaysian palm oil touched 5,104 ringgit ($1,165.30) on Friday, the highest considering that mid-2022.

"Sentiment right now is red-hot and extremely bullish, we need to take care," stated Dorab Mistry, director at Indian consumer items company Godrej International.

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

Mielke and Mistry prompted Indonesia to

think about delaying

B40 application on issue about its effect on food consumers.

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

import task 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)