Indonesia plans to implement B40 in January

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

B40 will need extra 3 mln lots feedstock, GAPKI says

Malaysia palm oil benchmark at highest since mid-2022

India may withdraw import tax hike amidst inflation, Mistry states

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

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recuperate in 2025 after an anticipated drop this year, however rates are anticipated to stay elevated due to planned growth of the nation's biodiesel mandate, industry analysts stated.

The palm oil criteria rate in Malaysia has actually risen 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 minimize fuel imports.

Palm oil output next year in leading manufacturer Indonesia is anticipated to recover by 1.5 million metric loads compared with a projected drop of simply over a million loads this year, Julian McGill, managing director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research firm Oil World, said he expects Indonesia's palm oil production to increase by as much as 2 million loads 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 anticipated to dip somewhat next year after increasing by an approximated 1 million heaps in 2024.

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

'FRIGHTENING' PRICE SURGE

The rate rise in palm oil in the past seven 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 tons will be needed for B40 execution, eroding export supply.

The current palm oil premium has currently caused palm to lose market share against other oils, Mielke included.

Malaysian palm oil prices 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 highest considering that mid-2022.

"Sentiment right now is red-hot and exceptionally bullish, we need to be careful," stated Dorab Mistry, director at Indian durable goods company Godrej International.

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

Mielke and Mistry urged Indonesia to

think about postponing

B40 on issue about its effect on food consumers.

Meanwhile, Mistry anticipated leading 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