LNG prices and oil prices down but cocoa strong: a monthly review of Papua New Guinea’s commodity and financial markets

LNG and oil prices have weakened but the cocoa price has strengthened. Business Advantage PNG’s monthly review of Papua New Guinea commodities and financial markets.

The LNG price is 5.8 per cent lower for the month, according to Kina Securities. But over the year it is up by more than a quarter according to Ycharts.

The oil price is down by 17.1 per cent over the month according to Kina, although it is up by 20.9 per cent over the year.

One year LNG price Source: Ycharts

The weakness in the oil price is being attributed to Saudi Arabia’s oil production, which has been at a record high this month—at between 11.1 million bpd and 11.3 million bpd on some days in November, according to Oilprice.com.

‘The Saudis, together with the leader of the non-OPEC nations part of the production cut deal—Russia, started to increase oil production in June to offset what the market expected to be a drop-off of Iranian oil supply once the US sanctions return,’ Oilprice.com reports.

‘Palm oil prices fell by 8.2 per cent for the month.’

‘Saudi Arabia’s crude oil exports hit their highest in 20 months in September, according to data by the Joint Organisations Data Initiative (JODI) database.’

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Cocoa

Cocoa prices rose by 7.4 per cent over the month according to Kina; the price is up by a quarter over the year.

Coffee prices went sideways over the month, but was down by 10.3 per cent over the year.

Palm oil prices fell by 8.2 per cent for the month, according to Kina, and are down by a fifth over the year.

‘The stock market moved sideways.’

Metals prices were steady. Gold was up 3.2 per cent over the month, but is down by 6.2 per cent over the year.

Silver had a monthly price rise of 0.9 per cent but is down by 15.3 per cent over the year.

Copper continued to weaken, falling by 2.6 per cent over the month. It is down 17.2 per cent over the year according to Kina.

Equities

The stock market moved sideways. The KSI Home Index (PNG-listed stocks only) rose 0.9 per cent in the month, according to Kina, and is up 5.1 per cent for the year.

The KSI Index (which includes dual-listed stocks as well) had a monthly fall of 2.1 per cent and is down slightly over the year.

The Australian All Ordinaries Index fell by 3.2 per cent over the month and America’s S&P 500 fell by 4.3 per cent.

The kina was steady against the US dollar over the month but was down by 2.3 per cent against the Australian dollar.

Half year Treasury Bills are trading at 4.73 per cent, while full year Bills are trading at 8.04 per cent. Three year inscribed stock has an interest yield of 9.54 per cent.

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