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<br>Indonesia plans to execute B40 in January<br> |
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<br>Because case, prices might rally 10%-15% in Jan-March, Mielke says<br> |
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<br>B40 will [require extra](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) 3 mln lots feedstock, GAPKI says<br> |
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<br>[Malaysia palm](https://www.pinterest.com.au/missionnewenergy/) oil standard at greatest considering that mid-2022<br> |
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<br>India may [withdraw import](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) [tax hike](https://pitchbook.com/profiles/company/51278-86) in the middle of inflation, Mistry states<br> |
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<br>(Adds expert remarks, updates Malaysia's palm oil benchmark cost)<br> |
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<br>By Bernadette Christina<br> |
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<br>NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recover in 2025 after an expected drop this year, but prices are anticipated to remain elevated due to scheduled growth of the country's [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) required, market analysts stated.<br> |
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<br>The palm oil [standard](https://www.pinterest.com.au/missionnewenergy/) price in [Malaysia](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) has risen more than 35% this year, raised by sluggish output and Indonesia's strategy to increase the mandatory domestic [biodiesel](https://www.zoominfo.com/c/mission-newenergy/346542889) mix to 40% in January from 35% now in an effort to reduce fuel imports.<br> |
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<br>Palm oil output next year in top producer Indonesia is expected to recover by 1.5 million metric heaps compared with a [projected drop](https://pitchbook.com/profiles/company/51278-86) of simply over a million loads this year, Julian McGill, handling director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.<br> |
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<br>Thomas Mielke, head of Hamburg-based research company Oil World, said he expects Indonesia's palm oil production to increase by as much as 2 million loads next year after a 2.5 million lot drop in 2024.<br> |
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<br>While [Indonesia's output](https://pitchbook.com/profiles/company/51278-86) is anticipated to enhance, provide from elsewhere and of other vegetable oils is seen [tightening](https://www.investing.com/equities/mission-newenergy-ltd-company-profile).<br> |
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<br>Palm oil output in neighbouring Malaysia is expected to dip somewhat next year after [increasing](https://www.bloomberg.com/profile/company/MNELF:US) by an estimated 1 million loads in 2024.<br> |
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<br>"We would require a healing in palm in 2025 since combined exports of soya, sunflower and rapeseed oils are declining," Mielke said.<br> |
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<br>'FRIGHTENING' PRICE SURGE<br> |
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<br>The [cost surge](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) in palm oil in the previous seven weeks has actually been "frightening" for purchasers, Mielke stated, adding that it would rally by 10%-15% in 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 lots will be needed for B40 implementation, deteriorating export supply.<br> |
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<br>The existing palm oil premium has already [triggered palm](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) to lose [market share](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) versus other oils, Mielke added.<br> |
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<br>Malaysian palm oil prices are seen trading at around $950 to $1,050 per metric load in 2025, McGill of Glenauk approximated.<br> |
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<br>Benchmark [Malaysian palm](https://www.bloomberg.com/profile/company/MNELF:US) oil touched 5,104 ringgit ($1,165.30) on Friday, the greatest given that mid-2022.<br> |
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<br>"Sentiment today is red-hot and very bullish, we need to beware," said Dorab Mistry, director at Indian customer products company Godrej International.<br> |
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<br>He forecast the [Malaysian cost](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) around 5,000 ringgit and above until June 2025.<br> |
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<br>Mielke and [Mistry prompted](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) [Indonesia](https://www.pinterest.com.au/missionnewenergy/) to<br> |
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<br>think about delaying<br> |
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<br>B40 [application](https://pitchbook.com/profiles/company/51278-86) on [concern](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) about its influence on food customers.<br> |
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<br>Meanwhile, Mistry anticipated top palm oil importer India to withdraw its<br> |
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<br>import task walking<br> |
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<br>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 |
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