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<br>[Indonesia prepares](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) to carry out B40 in January<br> |
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<br>Because case, prices may 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 tons feedstock, GAPKI states<br> |
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<br>[Malaysia palm](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) oil criteria at highest since mid-2022<br> |
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<br>India might [withdraw import](https://biodieselmagazine.com/articles/felda-global-buys-missions-kuantan-port-plant-for-11-5-million-9053) tax hike amid inflation, Mistry states<br> |
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<br>(Adds expert remarks, updates Malaysia's palm oil benchmark rate)<br> |
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<br>By [Bernadette](https://pitchbook.com/profiles/company/51278-86) Christina<br> |
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<br>NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's [palm oil](https://forest500.org/rankings/companies/mission-newenergy-limited) output is forecast to recover in 2025 after an expected drop this year, but rates are expected to stay raised due to [planned](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) expansion of the mandate, industry analysts stated.<br> |
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<br>The palm oil standard cost in Malaysia has actually increased more than 35% this year, lifted by sluggish output and Indonesia's strategy to [increase](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) the mandatory domestic [biodiesel](https://www.businessnews.com.au/Company/Mission-NewEnergy) blend to 40% in January from 35% now in an effort to minimize fuel imports.<br> |
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<br>[Palm oil](https://www.sec.gov/Archives/edgar/data/1463471/000165495419013063/R31.htm) output next year in leading producer Indonesia is expected to [recover](https://www.proactiveinvestors.co.uk/companies/news/159346/mission-newenergy-delivers-maiden-biodiesel-production-to-global-oil-major-24476.html) by 1.5 million metric lots compared to an estimated drop of just over a million lots 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 study firm Oil World, said he expects Indonesia's palm oil production to [increase](https://www.nasdaq.com/market-activity/ipos/overview?dealId=804419-65608) by as much as 2 million heaps next year after a 2.5 million heap drop in 2024.<br> |
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<br>While Indonesia's output is anticipated to improve, provide from in other places and of other vegetable oils is seen tightening.<br> |
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<br>Palm oil output in neighbouring Malaysia is anticipated to dip slightly next year after increasing by an estimated 1 million tons in 2024.<br> |
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<br>"We would need a recovery in palm in 2025 due to the fact that combined exports of soya, sunflower and rapeseed oils are declining," Mielke stated.<br> |
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<br>'FRIGHTENING' PRICE SURGE<br> |
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<br>The price surge in [palm oil](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) in the past seven weeks has been "frightening" for buyers, Mielke stated, adding 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](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) of around 3 million loads will be required for B40 execution, [deteriorating export](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) supply.<br> |
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<br>The current palm oil premium has already triggered palm to lose market share against other oils, Mielke added.<br> |
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<br>Malaysian palm oil rates are seen [trading](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) at around $950 to $1,050 per metric lot 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 highest because mid-2022.<br> |
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<br>"Sentiment right now is red-hot and extremely bullish, we have to take care," said Dorab Mistry, director at Indian durable goods company Godrej International.<br> |
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<br>He anticipated the Malaysian price around 5,000 [ringgit](https://www.abnnewswire.net/companies/en/31347/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97-Mission-NewEnergy-%E0%B8%88%E0%B8%B3%E0%B8%81%E0%B8%B1%E0%B8%94.html/4) and above up until June 2025.<br> |
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<br>Mielke and [Mistry prompted](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) [Indonesia](https://forest500.org/rankings/companies/mission-newenergy-limited) to<br> |
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<br>consider delaying<br> |
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<br>B40 implementation on concern about its influence on food consumers.<br> |
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<br>Meanwhile, Mistry anticipated top palm 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://www.energy-xprt.com/companies/mission-newenergy-limited-36048) Munthe Writing by Fransiska Nangoy |
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