Indonesia plans to implement B40 in January

Because case, rates may rally 10%-15% in Jan-March, Mielke says

B40 will need extra 3 mln tons feedstock, GAPKI says

Malaysia palm oil standard at highest given that mid-2022

India might withdraw import tax hike in the middle of inflation, Mistry states

(Adds expert remarks, updates Malaysia's palm oil standard 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 prices are anticipated to stay raised due to planned growth of the country's biodiesel mandate, market analysts said.

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

Palm oil output next year in top manufacturer Indonesia is expected to recuperate by 1.5 million metric lots compared with a projected drop of just over a million tons this year, Julian McGill, handling director at Glenauk Economics, told 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 lots next year after a 2.5 million heap drop in 2024.

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

Palm oil output in neighbouring Malaysia is anticipated 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 because combined exports of soya, sunflower and rapeseed oils are declining," Mielke stated.

'FRIGHTENING' PRICE SURGE

The rate rise in palm oil in the past seven weeks has been "frightening" for purchasers, Mielke said, 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 additional feedstock of around 3 million loads will be required for B40 execution, wearing down export supply.

The present palm oil premium has already caused palm to lose market share against other oils, Mielke added.

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 highest considering that mid-2022.

"Sentiment right now is red-hot and incredibly bullish, we have to take care," said Dorab Mistry, director at Indian customer items company Godrej International.

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

Mielke and Mistry urged Indonesia to

consider postponing

B40 implementation on issue about its effect on food consumers.

Meanwhile, Mistry anticipated leading 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