In the agribusiness sector coffee prices have risen, while prices in the hydrocarbons sector are largely unchanged, and metals prices are steady or lower. Business Advantage PNG’s monthly review of Papua New Guinea commodities and financial markets.

Oil Palm berries after harvest awaiting pick up, W New Britain, Papua New Guinea

The LNG price fell by 8.4 per cent in the month to mid-January, according to Kina Securities. Over the year, however, it is up by about a quarter according to Ycharts.

The oil price is up 15.6 per cent over the month (oilprice.com), but over the year it is down 20.6 per cent.

The global oil market may be set for a period of high volatility, with the United States—backed up by a number of European countries and Australia—is putting pressure on Venezuela’s political leadership and state-owned oil company.

Venezuela has the world’s largest oil reserves; the reserves are also of high quality.

‘Gold was up 1.9 per cent over the month.’

‘The US wants to obtain predominant influence over Venezuela in order to incorporate it into a parallel OPEC-like structure for challenging the joint Russian-Saudi OPEC,’ suggests one observer.

Agricultural commodities

Coffee has been a big mover, according to Kina. The price was up 8.5 per cent in the month to mid-January, and over the past year has been stable.

Cocoa prices rose by 5 per cent over the month. Over the year, the cocoa price has risen by about 15 per cent (tradingeconomics.com).

The one one month cocoa price Source: Tradingeconomics.com

Palm oil prices rose by 5 per cent in the month to mid-January, according to Kina, and are up 2.9 per cent over the year.

Metals

Metals prices were steady. Gold was up 1.9 per cent over the month, but is down by 2.7 per cent over the year (bullionvault.com).

‘Copper continued to weaken, falling by 4.2 per cent over the month.’

Silver had a monthly price rise of 2.4 per cent over the month and is down by 6 per cent over the year (bullionvault).

The one year copper price Credit: infomine.com

Copper continued to weaken, falling by 4.2 per cent over the month (investmentmine.com). It is down by over a quarter over the year.

Equities

PNG’s stock market moved sideways, with one listing—Highlands Pacific—likely to come off the Port Moresby Stock Exchange following its acquisition by Canada’s Cobalt 27.

The KSI Home Index (PNG-listed stocks only) was steady over the month, according to Kina, and is up 0.1 per cent for the year.

The KSI Index (which includes dual listed stocks) had a slight fall of 0.9 per cent and is down by 0.5 per cent over the year.

The Australian All Ordinaries Index was up 4.5 per cent over the month and America’s S&P 500 was up by 6.3 per cent.

The kina was steady against all the major currencies.

Half year Treasury Bills are trading at 4.71 per cent, while full year Bills are trading at 7.91 per cent. Three year inscribed stock has an interest yield of 9.54 per cent.