LNG has continued its slide and oil prices also weaken but cocoa and coffee prices rise. Business Advantage PNG’s monthly review of Papua New Guinea commodities and financial markets.

Cocoa beans. Credit: Pixabay

The LNG price fell sharply, by 14.2 per cent, according to Kina Securities. Over the year, the price is down by 47.5 per cent. The oil price is also down 7.7 per cent over May, according to Kina, and down 29.1 per cent over the year.

But there may be a sharp improvement in LNG prices in prospect. The Sydney Morning Herald has reported that the Australian Competition and Consumer Commission (ACCC) is forecasting gas prices to rise as much as 96 per cent over the next year. The

LNG Journal says the French major Total, which is the lead company in the proposed Papua LNG project, has stated that ‘its overall liquefied natural gas volumes are on the rise and are set to jump substantially for a third consecutive year and in the future

when the focus is on securing more long-term Russian and US offtake.’

Agriculture

Coffee prices were up, according to Kina. The price rose 5.7 per cent over the month, although over the year it is down 8.4 per cent.

Cocoa prices rose by 3.4 per cent over the month according to Kina, and are up by 2.1 per cent over the year.

Palm oil prices moved sideways, falling 0.5 per cent over May. The price is down 0.8 per cent over the year.

Equities

The stock markets were mixed. The KSI Home Index (PNG listed stocks only) was down 3 per cent over the month, according to Kina, and down 7.2 per cent for the year.

The KSI Index (which includes dual listed stocks) was stronger, however. It rose 0.3 per cent over the month and is up 0.6 per cent per cent over the year.

Looking at individual stocks, Oil Search’s share price fell 9.2 per cent over the month, although it is up 1.1 per cent over the year.

Newcrest’s stock price was up 5 per cent over the month and up by 23.4 per cent over the year.

Kina Securities continued to surge, rising 15.8 per cent over the month. The price is up 38.9 per cent over the year.

The Australian All Ordinaries Index was up 1.5 per cent over the month and 14.6 per cent over the year.

America’s S&P 500 was up by 4 per cent over the month and 12.7 per cent over the year.

In the currency markets, the kina was steady over the month against the US dollar and up 1.6 per cent against the Australian dollar.

Half year Treasury Bills are trading at 4.72 per cent, while full year Bills are trading at 6.77 per cent. Three year inscribed stock has an interest rate of 9.54 per cent.

Metals

Metals prices were steady. Gold was down 0.6 per cent over the month, and the same over the year, according to Kina.

The silver price was weaker, dropping 2.5 per cent over the month. It is down 6.3 per cent over the year.

The copper price was down 6.8 per cent over the month, but is up 2.6 per cent over the year.