Indonesia prepares to implement B40 in January

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

B40 will need extra 3 mln heaps feedstock, GAPKI states

Malaysia palm oil standard at greatest because mid-2022

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

(Adds analyst remarks, updates Malaysia's palm oil benchmark rate)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recuperate in 2025 after an expected drop this year, however rates are expected to stay raised due to scheduled growth of the nation's biodiesel required, industry analysts said.

The palm oil benchmark price in Malaysia has risen more than 35% this year, raised by sluggish output and Indonesia's strategy to increase the compulsory domestic biodiesel mix to 40% in January from 35% now in an effort to lower fuel imports.

Palm oil output next year in top producer Indonesia is expected to recover by 1.5 million metric heaps compared to an approximated drop of just over a million lots this year, Julian McGill, handling director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research study firm 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 heap drop in 2024.

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

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

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

'FRIGHTENING' PRICE SURGE

The cost surge in palm oil in the past seven weeks has actually been "frightening" for buyers, Mielke said, 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 heaps will be needed for B40 execution, wearing down export supply.

The existing palm oil premium has currently caused palm to lose market share versus other oils, Mielke added.

Malaysian palm oil rates are seen trading at around $950 to $1,050 per metric lot in 2025, McGill of Glenauk estimated.

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

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

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

Mielke and Mistry prompted Indonesia to

consider delaying

B40 application on issue about its effect on food consumers.

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

import duty 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; Editing by John Mair, Jane Merriman and Daren Butler)