Indonesia plans to implement B40 in January

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

B40 will need extra 3 mln heaps feedstock, GAPKI states

Malaysia palm oil benchmark at greatest considering that mid-2022

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

(Adds analyst comments, updates Malaysia's palm oil standard cost)

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, however prices are anticipated to stay elevated due to organized expansion of the nation's biodiesel required, industry experts said.

The palm oil criteria price in Malaysia has increased more than 35% this year, lifted by slow output and Indonesia's strategy to increase the obligatory domestic biodiesel mix to 40% in January from 35% now in an effort to minimize fuel imports.

Palm oil output next year in leading manufacturer Indonesia is anticipated to recover by 1.5 million metric heaps compared with an approximated drop of just over a million tons 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 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 ton 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 somewhat next year after increasing by an estimated 1 million tons in 2024.

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

'FRIGHTENING' PRICE SURGE

The price rise in palm oil in the previous 7 weeks has 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 said extra feedstock of around 3 million heaps will be required for B40 implementation, deteriorating export supply.

The current palm oil premium has actually already triggered 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 load in 2025, McGill of Glenauk estimated.

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 incredibly bullish, we need to beware," 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

think about postponing

B40 application on issue about its effect on food consumers.

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

import responsibility hike

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