Agro Diesel (India) Private Ltd

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  • Founded Date November 17, 1932
  • Sectors Sales & Marketing
  • Posted Jobs 0
  • Viewed 8
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Company Description

Indonesia Palm Oil Output Seen Recovering in 2025, However Biodiesel

Indonesia plans to implement B40 in January

In that case, costs may rally 10%-15% in Jan-March, Mielke says

B40 will require additional 3 mln loads feedstock, GAPKI says

Malaysia palm oil standard at highest considering that mid-2022

India may withdraw import tax trek amid inflation, Mistry states

(Adds analyst comments, updates Malaysia’s palm oil benchmark cost)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) – Indonesia’s palm oil output is forecast to recover in 2025 after an expected drop this year, but rates are expected to stay raised due to planned expansion of the country’s biodiesel required, market analysts said.

The palm oil benchmark price in Malaysia has increased more than 35% this year, raised by sluggish output and Indonesia’s plan to increase the obligatory domestic biodiesel mix to 40% in January from 35% now in an effort to reduce fuel imports.

Palm oil output next year in leading producer Indonesia is expected to recuperate by 1.5 million metric loads compared to an estimated drop of just over a million heaps this year, Julian McGill, managing director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research firm Oil World, said he anticipates Indonesia’s palm oil production to increase by as much as 2 million lots next year after a 2.5 million heap drop in 2024.

While Indonesia’s output is anticipated to improve, supply from somewhere else and of other veggie oils is seen tightening.

Palm oil output in neighbouring Malaysia is anticipated to dip somewhat next year after increasing by an estimated 1 million heaps in 2024.

“We would need a recovery in palm in 2025 because combined exports of soya, sunflower and rapeseed oils are decreasing,” Mielke said.

‘FRIGHTENING’ PRICE SURGE

The price surge in palm oil in the previous seven weeks has been “frightening” for buyers, Mielke stated, including that it would rally by 10%-15% in January-March if Indonesia imposes the so-called B40 policy.

The Indonesia Palm Oil Association stated extra feedstock of around 3 million lots will be required for B40 execution, eroding export supply.

The present palm oil premium has currently caused palm to lose market share versus other oils, Mielke included.

Malaysian palm oil rates are seen trading at around $950 to $1,050 per metric ton in 2025, McGill of Glenauk estimated.

Benchmark Malaysian palm oil touched 5,104 ringgit ($1,165.30) on Friday, the highest considering that mid-2022.

“Sentiment right now is red-hot and very bullish, we need to take care,” said Dorab Mistry, director at Indian durable goods business Godrej International.

He anticipated the Malaysian cost around 5,000 ringgit and above up until June 2025.

Mielke and Mistry prompted Indonesia to

consider postponing

B40 application on issue about its impact on food customers.

Meanwhile, Mistry anticipated leading palm oil importer India to withdraw its

import duty walking

from September after elections in the state of Maharashtra in November. ($1 = 4.3800 ringgit) (Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy; Editing by John Mair, Jane Merriman and Daren Butler)

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