Indonesia plans to carry out B40 in January

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

B40 will require extra 3 mln heaps feedstock, GAPKI states

Malaysia palm oil benchmark at greatest considering that mid-2022

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

(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 anticipated to recover in 2025 after an anticipated drop this year, however costs are anticipated to stay elevated due to planned growth of the country's biodiesel mandate, market experts said.

The palm oil benchmark rate in Malaysia has increased more than 35% this year, raised by sluggish output and Indonesia's plan to increase the mandatory domestic biodiesel mix to 40% in January from 35% now in an effort to minimize fuel imports.

Palm oil output next year in top producer Indonesia is anticipated to recuperate by 1.5 million metric loads compared to an estimated drop of simply over a million lots 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 tons next year after a 2.5 million ton drop in 2024.

While Indonesia's output is to improve, supply from somewhere else and of other veggie oils is seen tightening up.

Palm oil output in neighbouring Malaysia is expected to dip somewhat next year after increasing by an estimated 1 million tons in 2024.

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

'FRIGHTENING' PRICE SURGE

The cost rise in palm oil in the previous 7 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 stated extra feedstock of around 3 million heaps will be required for B40 execution, eroding export supply.

The current 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 since mid-2022.

"Sentiment right now is red-hot and very bullish, we need to beware," stated Dorab Mistry, director at Indian consumer goods company Godrej International.

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

Mielke and Mistry advised Indonesia to

consider postponing

B40 application on concern about its impact on food customers.

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

import task 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