Indonesia plans to execute B40 in January

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

B40 will need extra 3 mln heaps feedstock, GAPKI says

Malaysia palm oil benchmark at highest given that mid-2022

India might withdraw import tax hike amidst inflation, Mistry states

(Adds expert comments, updates Malaysia's palm oil benchmark rate)

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 remain raised due to scheduled growth of the nation's biodiesel required, industry experts stated.

The palm oil criteria cost in Malaysia has increased more than 35% this year, lifted by sluggish output and Indonesia's strategy to increase the necessary domestic biodiesel blend to 40% in January from 35% now in an effort to lower fuel imports.

Palm oil output next year in top manufacturer Indonesia is anticipated to recover by 1.5 million metric lots compared with an estimated drop of simply over a million lots this year, Julian McGill, handling director at Glenauk Economics, told 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 tons next year after a 2.5 million load drop in 2024.

While Indonesia's output is forecast to improve, provide from in other places and of other vegetable oils is seen tightening.

Palm oil output in neighbouring Malaysia is anticipated to dip somewhat next year after increasing by an approximated 1 million lots in 2024.

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

'FRIGHTENING' PRICE SURGE

The price rise in palm oil in the previous 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 said extra feedstock of around 3 million lots will be needed for B40 implementation, eroding export supply.

The existing palm oil premium has already triggered palm to lose market share against other oils, Mielke included.

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 considering that mid-2022.

"Sentiment today is red-hot and exceptionally bullish, we need to be cautious," stated Dorab Mistry, director at Indian customer items company Godrej International.

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

Mielke and Mistry prompted Indonesia to

think about postponing

B40 implementation on concern about its effect on food consumers.

Meanwhile, Mistry anticipated oil importer India to withdraw its

import task 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