diff --git a/Indonesia-Palm-Oil-Output-Seen-Recovering-in-2025%2C-but-Biodiesel.md b/Indonesia-Palm-Oil-Output-Seen-Recovering-in-2025%2C-but-Biodiesel.md new file mode 100644 index 0000000..70d0d76 --- /dev/null +++ b/Indonesia-Palm-Oil-Output-Seen-Recovering-in-2025%2C-but-Biodiesel.md @@ -0,0 +1,28 @@ +
Indonesia plans to execute B40 in January
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Because case, costs may rally 10%-15% in Jan-March, Mielke says
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B40 will need additional 3 mln lots feedstock, GAPKI says
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Malaysia palm oil standard at greatest considering that mid-2022
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India may withdraw import [tax hike](https://stocktwits.com/symbol/MNEL) amidst inflation, Mistry says
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(Adds analyst remarks, updates Malaysia's palm oil benchmark price)
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By Bernadette Christina
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NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is [anticipated](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) to recover in 2025 after an anticipated drop this year, however prices are to stay [elevated](https://pitchbook.com/profiles/company/51278-86) due to organized growth of the country's [biodiesel](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) required, [market analysts](https://www.businessnews.com.au/Company/Mission-NewEnergy) said.
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The palm oil [standard](https://www.pinterest.com.au/missionnewenergy/) price in [Malaysia](https://www.marketscreener.com/quote/stock/MISSION-NEWENERGY-LIMITED-178469/company/) has increased more than 35% this year, lifted by slow output and [Indonesia's](https://forest500.org/rankings/companies/mission-newenergy-limited) plan to increase the [mandatory domestic](https://www.zoominfo.com/c/mission-newenergy/346542889) [biodiesel](https://www.pinterest.com.au/missionnewenergy/) blend to 40% in January from 35% now in an effort to reduce fuel imports.
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Palm oil output next year in top producer Indonesia is anticipated to recover by 1.5 million metric tons compared with an [estimated drop](https://www.businessnews.com.au/Company/Mission-NewEnergy) of simply over a million loads this year, Julian McGill, managing director at Glenauk Economics, told the Indonesia Palm [Oil Conference](https://www.google.com/search?kgmid=/m/0cqd_rb) on Friday.
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Thomas Mielke, head of Hamburg-based research [firm Oil](https://www.energy-xprt.com/companies/mission-newenergy-limited-36048) World, stated he expects Indonesia's palm oil production to increase by as much as 2 million heaps next year after a 2.5 million heap drop in 2024.
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While Indonesia's output is anticipated to enhance, supply from elsewhere and of other [veggie oils](https://www.pinterest.com.au/missionnewenergy/) is seen tightening up.
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Palm oil output in neighbouring Malaysia is anticipated to dip a little next year after increasing by an approximated 1 million loads in 2024.
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"We would need a healing in palm in 2025 due to the fact that combined exports of soya, sunflower and rapeseed oils are declining," Mielke stated.
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'FRIGHTENING' PRICE SURGE
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The [rate surge](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) in palm oil in the past seven weeks has actually been "frightening" for purchasers, Mielke stated, adding that it would rally by 10%-15% in [January-March](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html) if Indonesia imposes the so-called B40 policy.
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The Indonesia Palm Oil Association stated extra feedstock of around 3 million tons will be needed for B40 execution, eroding export supply.
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The existing palm oil premium has already caused palm to lose market share against other oils, Mielke included.
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Malaysian palm oil costs are seen trading at around $950 to $1,050 per metric ton in 2025, McGill of Glenauk estimated.
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Benchmark Malaysian palm [oil touched](https://www.businessnews.com.au/Company/Mission-NewEnergy) 5,104 ringgit ($1,165.30) on Friday, the highest since mid-2022.
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"Sentiment right now is red-hot and very bullish, we have to beware," stated Dorab Mistry, [director](https://www.investing.com/equities/mission-newenergy-ltd-company-profile) at Indian durable goods [company](https://pitchbook.com/profiles/company/51278-86) [Godrej International](https://www.proactiveinvestors.co.uk/companies/news/159352/mission-newenergy-debt-free-focused-on-biofuel-joint-venture-60797.html).
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He forecast the [Malaysian cost](https://www.intelligentinvestor.com.au/shares/asx-mbt/mission-newenergy-limited/share-price) around 5,000 ringgit and above up until June 2025.
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Mielke and Mistry advised Indonesia to
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consider postponing
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B40 execution on concern about its effect on food customers.
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Meanwhile, Mistry anticipated top palm oil importer India to withdraw its
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import responsibility hike
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imposed from September after elections in the state of Maharashtra in November. ($1 = 4.3800 ringgit) (Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy \ No newline at end of file