Indonesia prepares to execute B40 in January

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

B40 will require extra 3 mln tons feedstock, GAPKI says

Malaysia palm oil criteria at highest because mid-2022

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

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

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recuperate in 2025 after an anticipated drop this year, however costs are anticipated to stay raised due to organized expansion of the country's biodiesel mandate, industry analysts stated.

The palm oil criteria price in Malaysia has increased more than 35% this year, raised 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 reduce fuel imports.

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

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

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

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

'FRIGHTENING' PRICE SURGE

The cost surge in palm oil in the past seven weeks has been "frightening" for buyers, 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 extra feedstock of around 3 million loads will be needed for B40 application, eroding export supply.

The current palm oil premium has actually 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 approximated.

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

"Sentiment today is red-hot and exceptionally bullish, we have to be mindful," stated Dorab Mistry, director at Indian durable goods company Godrej International.

He anticipated the Malaysian cost around 5,000 ringgit and above till June 2025.

Mielke and Mistry advised Indonesia to

think about postponing

B40 implementation on issue about its effect on food customers.

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

import responsibility walking

enforced 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)