Indonesia plans to implement B40 in January

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

B40 will require extra 3 mln heaps feedstock, GAPKI states

Malaysia palm oil standard at highest since mid-2022

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

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

By Bernadette Christina

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

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

Palm oil output next year in leading producer Indonesia is anticipated to recover by 1.5 million metric lots compared to an estimated drop of just over a million heaps 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 heaps next year after a 2.5 million ton drop in 2024.

While Indonesia's output is forecast to enhance, provide 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 loads in 2024.

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

'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 enforces the so-called B40 policy.

The Indonesia Palm Oil Association said extra feedstock of around 3 million lots will be required for B40 execution, eroding export supply.

The existing palm oil premium has actually already caused 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 lot in 2025, McGill of Glenauk approximated.

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

"Sentiment today is red-hot and exceptionally bullish, we have to beware," stated Dorab Mistry, director at Indian customer products company Godrej International.

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

Mielke and Mistry advised Indonesia to

think about postponing

B40 execution on concern about its effect on food customers.

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

import duty 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)