Oil prices are steady and copper is also strong, but LNG has weakened. Business Advantage PNG’s monthly review of Papua New Guinea commodity and financial markets.

The 1 year copper spot price. Source: kitco.com

Oil prices have remained steady, according to Kina Securities, with West Texas Intermediate easing 1.6 per cent over the month. Over the year, it is up 3.4 per cent.

According to BSP Capital, concerns about ramping US oil production have been offset by data that showed an unexpected drop in crude inventories.

LNG prices came off sharply, falling by almost a quarter over a period of a month, according to Kina. It is down 28.4 per cent over the year.

‘The United States is to lead the growth in LNG production and Qatar will face a competition for its LNG exports from Australia in East Asia.’

According to oilindustryinsight, global LNG production is expected to exceed 300 million tonnes in 2018, with growing competition for LNG supply share between Qatar, Australia and the US to intensify.

The US is to lead the growth in LNG production and Qatar will face a competition for its LNG exports from Australia in East Asia, where Australia is likely to continue to grow its supply share.

Steady

Cocoa was a big mover, rising in price by 10.3 per cent over the month. It is up 13 per cent over the year, according to Kina.

World cocoa production by country. Credit: Statista

Elsewhere, prices were steady. Gold was up 1.2 per cent per cent for the month and is up 3 per cent over the year.

‘Copper continues to be strong, rising 0.8 per cent over the month.’

The silver price has fallen 1.8 per cent over the month.

Copper continues to be strong, rising 0.8 per cent over the month, according to kitco.com. Over the year it is up by over 18 per cent.

Coffee prices weakened by 3.8 per cent over the month and are down 6.5 per cent for the year. Palm oil was up 2.6 per cent for the month, reports Kina.

Equities

The stock market moved sideways. The KSI Home Index (PNG listed stocks only) rose 0.1 per cent in the month, according to Kina, and is up 0.2 per cent for the year.

‘Half year Treasury Bills are trading at 4.72 per cent.’

The KSI Index (which includes dual-listed stocks) had a monthly rise of 1.9 per cent.

The Australian All Ordinaries Index fell by 1 per cent over the month and America’s S&P 500 fell by 3.6 per cent.

Over the month the kina was steady against the US, Australian and New Zealand dollars, but it fell by 4.2 per cent against the yen.

Half year Treasury Bills are trading at 4.72 per cent, while full year Bills are trading at 8.04 per cent.

Three year inscribed stock has an interest yield of 9.48 per cent.