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<br>Indonesia plans to implement B40 in January<br> |
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<br>In that case, costs may rally 10%-15% in Jan-March, Mielke says<br> |
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<br>B40 will need [additional](https://www.pinterest.com.au/missionnewenergy/) 3 mln tons feedstock, GAPKI says<br> |
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<br>Malaysia palm oil standard at greatest since mid-2022<br> |
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<br>India may withdraw import tax hike amid inflation, Mistry states<br> |
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<br>(Adds analyst remarks, updates Malaysia's palm oil standard price)<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 anticipated drop this year, however rates are anticipated to remain elevated due to planned growth of the country's [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) mandate, market experts said.<br> |
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<br>The [palm oil](https://www.crunchbase.com/organization/mission-newenergy) benchmark rate in Malaysia has risen more than 35% this year, raised by slow output and Indonesia's plan to increase the [biodiesel](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) blend to 40% in January from 35% now in an effort to reduce fuel [imports](https://stocktwits.com/symbol/MNEL).<br> |
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<br>Palm oil output next year in [leading producer](https://pitchbook.com/profiles/company/51278-86) Indonesia is [anticipated](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) to recover by 1.5 million metric loads compared with an [approximated drop](https://forest500.org/rankings/companies/mission-newenergy-limited) of just over a million heaps this year, Julian McGill, managing 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 firm 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.<br> |
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<br>While Indonesia's output is forecast to enhance, provide from in other places and of other vegetable oils is seen tightening up.<br> |
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<br>[Palm oil](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) output in neighbouring Malaysia is anticipated to dip somewhat next year after increasing by an [approximated](https://www.bloomberg.com/profile/company/MNELF:US) 1 million lots 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 [rate rise](https://stocktwits.com/symbol/MNEL) in [palm oil](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) in the previous seven weeks has been "frightening" for purchasers, Mielke said, including that it would rally by 10%-15% in January-March if Indonesia enforces the so-called B40 policy.<br> |
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<br>The Indonesia Palm Oil Association said extra feedstock of around 3 million heaps will be required for B40 application, [deteriorating export](https://www.google.com/search?kgmid=/m/0cqd_rb) supply.<br> |
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<br>The existing palm oil premium has actually already [triggered palm](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) to lose [market share](https://www.google.com/search?kgmid=/m/0cqd_rb) versus other oils, [Mielke included](https://www.investing.com/equities/mission-newenergy-ltd-company-profile).<br> |
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<br>Malaysian palm oil costs are seen trading at around $950 to $1,050 per metric ton in 2025, McGill of Glenauk approximated.<br> |
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<br>[Benchmark Malaysian](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) palm oil touched 5,104 ringgit ($1,165.30) on Friday, the greatest since mid-2022.<br> |
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<br>"Sentiment today is red-hot and exceptionally bullish, we have to be cautious," said Dorab Mistry, director at Indian customer items business Godrej International.<br> |
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<br>He forecast the Malaysian rate around 5,000 [ringgit](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) and above till June 2025.<br> |
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<br>Mielke and Mistry advised Indonesia to<br> |
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<br>think about postponing<br> |
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<br>B40 application on concern about its impact on food consumers.<br> |
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<br>Meanwhile, Mistry [anticipated leading](https://www.crunchbase.com/organization/mission-newenergy) 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](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) in November. ($1 = 4.3800 ringgit) (Reporting by [Bernadette Christina](https://www.google.com/search?kgmid=/m/0cqd_rb) Munthe Writing by Fransiska Nangoy |
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