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<br>Indonesia plans to execute B40 in January<br> |
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<br>In that case, prices might rally 10%-15% in Jan-March, Mielke says<br> |
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<br>B40 will need additional 3 mln loads feedstock, GAPKI says<br> |
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<br>Malaysia palm oil benchmark at highest since mid-2022<br> |
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<br>India might withdraw import tax trek amidst inflation, Mistry states<br> |
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<br>(Adds analyst remarks, updates Malaysia's palm oil criteria cost)<br> |
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<br>By Bernadette Christina<br> |
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<br>NUSA DUA, Indonesia, Nov 8 (Reuters) [- Indonesia's](https://www.zoominfo.com/c/mission-newenergy/346542889) palm oil output is forecast to [recuperate](https://www.pinterest.com.au/missionnewenergy/) in 2025 after an [anticipated drop](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) this year, however rates are expected to stay elevated due to planned growth of the country's [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) required, industry experts said.<br> |
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<br>The [palm oil](https://www.bloomberg.com/profile/company/MNELF:US) benchmark rate in [Malaysia](https://www.pinterest.com.au/missionnewenergy/) has actually risen more than 35% this year, raised by sluggish output and Indonesia's strategy to increase the [mandatory domestic](https://stocktwits.com/symbol/MNEL) biodiesel mix to 40% in January from 35% now in an effort to decrease fuel imports.<br> |
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<br>[Palm oil](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) output next year in [leading manufacturer](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) Indonesia is expected to recover by 1.5 million metric tons compared with an estimated drop of simply over a million heaps this year, Julian McGill, managing director at Glenauk Economics, told the Indonesia Palm Oil Conference on Friday.<br> |
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<br>Thomas Mielke, head of Hamburg-based research study firm Oil World, stated he anticipates Indonesia's palm oil production to [increase](https://stocktwits.com/symbol/MNEL) by as much as 2 million heaps next year after a 2.5 million load drop in 2024.<br> |
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<br>While Indonesia's output is forecast to enhance, provide from somewhere else and of other [veggie oils](https://www.zoominfo.com/c/mission-newenergy/346542889) is seen tightening.<br> |
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<br>Palm oil output in neighbouring Malaysia is [expected](https://www.bloomberg.com/profile/company/MNELF:US) to dip slightly next year after increasing by an [approximated](https://www.bloomberg.com/profile/company/MNELF:US) 1 million loads in 2024.<br> |
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<br>"We would need a recovery in palm in 2025 since combined exports of soya, sunflower and rapeseed oils are decreasing," Mielke said.<br> |
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<br>'FRIGHTENING' PRICE SURGE<br> |
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<br>The cost rise in palm oil in the past 7 weeks has been "frightening" for purchasers, Mielke said, including that it would rally by 10%-15% in January-March if Indonesia implements the so-called B40 policy.<br> |
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<br>The Indonesia Palm Oil Association stated additional feedstock of around 3 million heaps will be required for B40 application, eroding export supply.<br> |
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<br>The present palm oil premium has currently caused palm to lose market share versus other oils, Mielke added.<br> |
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<br>Malaysian palm oil rates are seen [trading](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) at around $950 to $1,050 per [metric heap](https://stocktwits.com/symbol/MNEL) in 2025, McGill of Glenauk estimated.<br> |
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<br>Benchmark Malaysian palm oil touched 5,104 ringgit ($1,165.30) on Friday, the greatest since mid-2022.<br> |
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<br>"Sentiment right now is red-hot and very bullish, we have to take care," said Dorab Mistry, director at Indian durable goods business Godrej International.<br> |
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<br>He forecast the [Malaysian cost](https://www.google.com/search?kgmid=/m/0cqd_rb) around 5,000 ringgit and above till June 2025.<br> |
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<br>Mielke and Mistry advised [Indonesia](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) to<br> |
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<br>think about delaying<br> |
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<br>B40 application on [concern](https://forest500.org/rankings/companies/mission-newenergy-limited) about its impact on food consumers.<br> |
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<br>Meanwhile, Mistry expected leading palm oil importer India to its<br> |
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<br>import duty hike<br> |
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<br>imposed from September after elections in the state of Maharashtra in November. ($1 = 4.3800 ringgit) ([Reporting](https://www.pinterest.com.au/missionnewenergy/) by Bernadette Christina Munthe Writing by Fransiska Nangoy |
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