Copper and palm oil prices have surged while cocoa prices have eased sharply over the last month. Gas and oil prices are largely unchanged and precious metals prices have eased. Business Advantage PNG’s monthly overview of commodity and financial markets.

Copper prices over 1 year Source: Infomine.com

The main mover over the last month has been the copper price, which is good news for Ok Tedi Mining. According to Kina Funds Management, the copper price rose by 20.6 per cent to US$2.66 an ounce over the last month. It is up 23.9 per cent for the year. There are signs of increased supply. One of Peru’s biggest copper mines has been cleared for expansion: the Toromocho mega-mine, which is owned by China’s Chinalco.

Gold and silver were down, but only modestly. According to Kina Funds Management, gold was down 6 per cent over the month; it is still up 12.7 per cent for the year. Silver was down 6.4 per cent for the month but it is up 19.7 per cent for the year.

Oil and gas

Oil and gas changed little. West Texas Intermediate appears to have found a floor. It was up 0.1 per cent for the month. It is up 27.9 per cent for the year. LNG prices also appear to be trading within a tight range. The Japan/Korea LNG price is US$7.05 per million British Thermal Units (BTU): up 1 per cent for the month and 1.6 per cent for the year.

Cocoa prices over 3 months Source: NASDAQ

Agricultural commodities

Meanwhile, Malaysian palm oil rose sharply. It is up 11.6 per cent for the month and 33.5 per cent for the year.

The cocoa price remains weak. It is down 12.1 per cent over the month and 25.6 per cent for the year. The coffee price also eased, falling 6.8 per cent for the month. However, it is up 23.7 per cent for the year.

Equities

There was little movement in equity prices. The KSi Home Index (stocks listed only in PNG) was down 0.1 per cent for the month, while the KSi index (which includes dual listed stocks) was up 0.6 per cent for the month.

Internationally, the Australian All Ordinaries Index was up 2.4 per cent for the month and America’s S&P 500 was up 3.6 per cent for the month.

Bank South Pacific shares are trading within a tight range; they are up a modest 0.3 per cent for the month, but up 20 per cent for the year. City Pharmacy shares fell by 12.3 per cent over the month and are down 24.8 per cent for the year. Airlines PNG shares were unchanged over the month but are down by 54.5 per cent for the year, according to Kina Funds Management.

Currencies

The kina is showing signs of stability against the US dollar. It fell by 0.2 per cent over the month which equates with a 5.3 per cent fall for the year. Against the Australian dollar, the currency fell by 1.7 per cent for the month; it has fallen 7.4 per cent for the year.

Against the yen, the kina rose, however. It was up 6.8 per cent for the month. It remains down 11.8 per cent for the year.

Half year Treasury Bills are unchanged at 4.72 per cent. Full year Bills are trading at 7.73 per cent.