Indonesia prepares to carry out B40 in January

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

B40 will need extra 3 mln lots feedstock, GAPKI states

Malaysia palm oil standard at greatest given that mid-2022

India might withdraw import tax trek amidst inflation, Mistry states

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

By Bernadette Christina

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

The palm oil standard price in Malaysia has actually increased more than 35% this year, lifted by slow output and Indonesia's plan to increase the obligatory 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 lots compared with a projected drop of simply over a million loads 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 company Oil World, stated he expects Indonesia's palm oil production to increase by as much as 2 million lots next year after a 2.5 million load drop in 2024.

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

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

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

'FRIGHTENING' PRICE SURGE

The rate rise in in the past seven weeks has been "frightening" for purchasers, Mielke said, 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 extra feedstock of around 3 million lots will be required for B40 implementation, eroding export supply.

The existing palm oil premium has actually currently triggered palm to lose market share against 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 approximated.

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

"Sentiment today is red-hot and exceptionally bullish, we need to be careful," stated Dorab Mistry, director at Indian consumer products business Godrej International.

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

Mielke and Mistry advised Indonesia to

consider delaying

B40 application on concern about its influence on food customers.

Meanwhile, Mistry anticipated 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