Indonesia prepares to execute B40 in January

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

B40 will require extra 3 mln loads feedstock, GAPKI says

Malaysia palm oil benchmark at greatest because mid-2022

India might withdraw import tax trek amid inflation, Mistry states

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

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recover in 2025 after an expected drop this year, however rates are expected to remain elevated due to scheduled growth of the nation's biodiesel mandate, industry experts said.

The palm oil benchmark rate in Malaysia has risen more than 35% this year, lifted by slow output and Indonesia's plan to increase the necessary 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 expected to recover by 1.5 million metric heaps compared to an approximated drop of just over a million heaps 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, stated he expects Indonesia's palm oil production to increase by as much as 2 million heaps next year after a 2.5 million load drop in 2024.

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

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

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

'FRIGHTENING' PRICE SURGE

The cost surge in palm oil in the past seven weeks has been "frightening" for purchasers, Mielke stated, adding 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 lots will be needed for B40 application, eroding export supply.

The existing palm oil premium has 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 load 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 right now is red-hot and extremely bullish, we need to be careful," stated Dorab Mistry, director at Indian customer products company Godrej International.

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

Mielke and Mistry urged Indonesia to

think about postponing

B40 application on concern about its effect on food customers.

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

import task walking

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; Editing by John Mair, Jane Merriman and Daren Butler)