Indonesia plans to carry out B40 in January

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

B40 will need additional 3 mln loads feedstock, GAPKI states

Malaysia palm oil criteria at highest given that mid-2022

India might withdraw import tax trek amidst 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 anticipated to recover in 2025 after an anticipated drop this year, however rates are expected to stay raised due to planned growth of the country's biodiesel mandate, market analysts stated.

The palm oil benchmark rate in Malaysia has actually risen more than 35% this year, lifted by slow output and Indonesia's strategy 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 expected to recover by 1.5 million metric tons compared to an estimated drop of just over a million loads this year, Julian McGill, handling director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research company Oil World, said he anticipates Indonesia's palm oil production to increase by as much as 2 million heaps next year after a 2.5 million heap drop in 2024.

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

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

"We would need a healing in palm in 2025 because combined exports of soya, sunflower and rapeseed oils are declining," Mielke said.

'FRIGHTENING' PRICE SURGE

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

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

The current palm oil premium has already caused palm to share against 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 approximated.

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 extremely bullish, we need to take care," said Dorab Mistry, director at Indian consumer products business Godrej International.

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

Mielke and Mistry urged Indonesia to

think about postponing

B40 implementation on concern about its effect on food customers.

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

import task walking

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