Indonesia prepares to implement B40 in January

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

B40 will need additional 3 mln heaps feedstock, GAPKI states

Malaysia palm oil criteria at greatest given that mid-2022

India might withdraw import tax hike amidst inflation, Mistry says

(Adds analyst comments, updates Malaysia's palm oil standard price)

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 raised due to scheduled growth of the nation's biodiesel required, market analysts said.

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

Palm oil output next year in top manufacturer Indonesia is anticipated to recuperate by 1.5 million metric loads compared to an estimated 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, said he expects Indonesia's palm oil production to increase by as much as 2 million tons next year after a 2.5 million load drop in 2024.

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

Palm oil output in neighbouring Malaysia is expected to dip slightly next year after increasing by an estimated 1 million loads in 2024.

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

'FRIGHTENING' PRICE SURGE

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

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

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

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 greatest given that mid-2022.

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

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

Mielke and Mistry urged Indonesia to

think about postponing

B40 application on issue about its impact on food customers.

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

import duty 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)