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<br>Indonesia plans to implement B40 in January<br> |
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<br>In that case, rates may rally 10%-15% in Jan-March, Mielke states<br> |
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<br>B40 will need extra 3 [mln loads](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) feedstock, GAPKI states<br> |
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<br>Malaysia palm oil criteria at greatest since mid-2022<br> |
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<br>India may [withdraw import](https://stocktwits.com/symbol/MNEL) tax trek in the middle of inflation, Mistry states<br> |
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<br>(Adds expert comments, updates Malaysia's palm oil standard 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](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) output is anticipated to recover in 2025 after an anticipated drop this year, but costs are [expected](https://www.zonebourse.com/cours/action/MISSION-NEWENERGY-LIMITED-8557641/) to remain raised due to organized expansion of the country's [biodiesel](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) mandate, industry experts stated.<br> |
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<br>The palm oil [criteria](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) rate in Malaysia has actually increased more than 35% this year, raised by slow output and Indonesia's plan to increase the mandatory domestic [biodiesel](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) blend to 40% in January from 35% now in an effort to lower fuel .<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](https://pitchbook.com/profiles/company/51278-86) with a [projected drop](https://pitchbook.com/profiles/company/51278-86) of simply over a million tons this year, Julian McGill, [handling director](https://forest500.org/rankings/companies/mission-newenergy-limited) at Glenauk Economics, told the [Indonesia Palm](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) Oil Conference on Friday.<br> |
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<br>Thomas Mielke, head of Hamburg-based research firm Oil World, said he expects Indonesia's palm oil production to increase by as much as 2 million tons next year after a 2.5 million heap drop in 2024.<br> |
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<br>While Indonesia's output is forecast to enhance, supply from somewhere else and of other veggie oils is seen tightening.<br> |
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<br>Palm oil output in neighbouring Malaysia is anticipated to dip a little next year after increasing by an estimated 1 million lots in 2024.<br> |
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<br>"We would require a healing in palm in 2025 due to the fact that 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 price rise in palm oil in the previous 7 weeks has been "frightening" for purchasers, Mielke stated, [including](https://forest500.org/rankings/companies/mission-newenergy-limited) 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 additional feedstock of around 3 million tons will be needed for B40 implementation, wearing down export supply.<br> |
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<br>The current palm oil premium has currently caused palm to [lose market](https://www.zoominfo.com/c/mission-newenergy/346542889) share versus other oils, Mielke included.<br> |
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<br>[Malaysian](https://www.zoominfo.com/c/mission-newenergy/346542889) [palm oil](https://www.zoominfo.com/c/mission-newenergy/346542889) rates are seen trading at around $950 to $1,050 per metric lot in 2025, McGill of [Glenauk approximated](https://www.investing.com/equities/mission-newenergy-ltd-company-profile).<br> |
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<br>[Benchmark Malaysian](https://www.proactiveinvestors.com.au/ASX:MBT/Mission-NewEnergy-Ltd) palm oil touched 5,104 [ringgit](https://www.crunchbase.com/organization/mission-newenergy) ($1,165.30) on Friday, the highest because mid-2022.<br> |
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<br>"Sentiment today is red-hot and very bullish, we have to beware," said Dorab Mistry, director at Indian consumer products company Godrej International.<br> |
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<br>He anticipated the Malaysian price around 5,000 ringgit and above till June 2025.<br> |
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<br>Mielke and Mistry advised Indonesia to<br> |
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<br>consider delaying<br> |
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<br>B40 execution on issue about its effect on food customers.<br> |
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<br>Meanwhile, Mistry [expected](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) [leading palm](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) oil importer India to withdraw its<br> |
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<br>import responsibility hike<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](https://forest500.org/rankings/companies/mission-newenergy-limited) Munthe Writing by Fransiska Nangoy |
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