We are pleased to share the latest insights on key movements in global and local food commodity markets, with a focus on vegetable oils, cocoa, and coconut-based ingredients.
Vegetable Oils & Palm-Based Products
Global Market
Palm oil–derived vegetable oils and fats have shown a moderate upward trend at the start of the week. This increase is primarily driven by rising crude oil and soybean prices, along with higher operational and packaging costs in major exporting countries such as Malaysia and Indonesia. Notably, packaging material costs have risen by up to 50% in some cases.
Local Market
Freight costs have surged significantly—from around USD 1,000 to approximately USD 5,000 per 20-foot container—resulting in increased import costs. However, local selling prices remain relatively stable due to existing inventory and subdued demand from food manufacturers facing export challenges.
An exception is palm olein (frying oil), which has seen a notable price increase alongside strong domestic demand.
Cocoa & Derivatives
Global Market
Cocoa bean prices have experienced volatility due to mixed reports on crop conditions in Africa and South America. In the short term, market indicators point toward price stabilization, supported by improved crop availability.
However, rising freight costs from producing regions to processing hubs in Asia may lead to an increase of USD 100–200 per ton in cocoa derivatives such as powder, butter, and cocoa mass.
Local Market
Shipping costs have climbed from around USD 1,500 to USD 8,000 per 40-foot container, increasing import expenses. Despite this, prices in the local market have not yet seen a significant rise due to available stock and reduced demand.
Coconut Products & Coffee Creamers
Coconut-based products and coffee creamers are closely tied to vegetable oil price movements. As such, the current increase in production and packaging costs in exporting countries—combined with higher freight rates—is expected to drive upward price pressure.
Locally, while import costs have increased, prices remain largely stable for now due to existing stock levels and softer demand from food manufacturers.
Current Average Market Prices (Local)
- Cocoa Butter Substitute: AED 11.75 – 12.50 / kg
- Shortening: AED 5.75 – 6.75 / kg
- Palm Olein Oil: AED 5.58 – 5.88 / liter
- Medium-Grade Cocoa Powder: AED 11.60 – 12.00 / kg
- Desiccated Coconut: AED 8.80 – 9.00 / kg
- Coconut Oil: AED 16.65 – 17.75 / kg
Outlook
While global cost pressures—particularly freight and production expenses—continue to rise, their full impact on the local market has yet to materialize due to existing inventories and demand constraints. Close monitoring of supply chain dynamics and export activity will be key in the coming weeks.
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