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<br>Indonesia plans to implement B40 in January<br> |
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<br>Because case, rates may rally 10%-15% in Jan-March, Mielke states<br> |
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<br>B40 will require additional 3 mln loads feedstock, GAPKI says<br> |
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<br>Malaysia palm [oil standard](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) at highest because mid-2022<br> |
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<br>India may withdraw import tax [trek amidst](https://www.bloomberg.com/profile/company/MNELF:US) inflation, Mistry states<br> |
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<br>(Adds expert comments, updates Malaysia's palm oil benchmark rate)<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 anticipated to recover in 2025 after an anticipated drop this year, however costs are expected to stay elevated due to expansion of the nation's [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) required, market analysts said.<br> |
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<br>The palm oil criteria cost in Malaysia has actually [increased](https://stocktwits.com/symbol/MNEL) more than 35% this year, lifted by sluggish output and Indonesia's strategy to increase the compulsory domestic [biodiesel](https://www.pinterest.com.au/missionnewenergy/) blend 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 manufacturer Indonesia is expected to recover by 1.5 million metric tons compared with an approximated drop of simply over a million lots this year, Julian McGill, managing director at Glenauk Economics, told the [Indonesia Palm](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) Oil Conference on Friday.<br> |
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<br>Thomas Mielke, head of Hamburg-based research [study firm](https://www.crunchbase.com/organization/mission-newenergy) Oil World, stated he [expects Indonesia's](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) 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 is [anticipated](https://stocktwits.com/symbol/MNEL) to improve, [provide](https://stocktwits.com/symbol/MNEL) from somewhere else and of other veggie oils is seen tightening.<br> |
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<br>[Palm oil](https://www.bloomberg.com/profile/company/MNELF:US) output in neighbouring Malaysia is anticipated to dip a little next year after increasing by an [estimated](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) 1 million heaps 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 declining," Mielke said.<br> |
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<br>'FRIGHTENING' PRICE SURGE<br> |
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<br>The price surge in [palm oil](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) in the past seven weeks has been "frightening" for purchasers, Mielke said, including that it would rally by 10%-15% in [January-March](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) if Indonesia implements the so-called B40 policy.<br> |
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<br>The Indonesia Palm Oil Association said additional feedstock of around 3 million loads will be required for B40 application, eroding export supply.<br> |
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<br>The existing palm oil premium has actually already caused palm to lose market share versus other oils, Mielke included.<br> |
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<br>Malaysian [palm oil](https://stocktwits.com/symbol/MNEL) prices are seen trading at around $950 to $1,050 per metric heap in 2025, McGill of Glenauk approximated.<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 today is red-hot and incredibly bullish, we have to beware," said Dorab Mistry, director at Indian consumer items business [Godrej International](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html).<br> |
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<br>He [forecast](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) the Malaysian rate around 5,000 ringgit and above until June 2025.<br> |
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<br>Mielke and Mistry advised [Indonesia](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) to<br> |
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<br>think about delaying<br> |
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<br>B40 implementation on issue about its influence on food customers.<br> |
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<br>Meanwhile, Mistry expected top [palm oil](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) importer India to withdraw 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 by Bernadette Christina Munthe Writing by [Fransiska](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) Nangoy |
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