MARKET DEVELOPMENT
Local Productions Drop
Local Productions Drop
10/07/2013 (Solomon Star) - Production of local commodities in the country has dropped significantly throughout the month of May.
According to the Central Bank of Solomon Islands quarterly bulletin report for May, domestic commodities like logs, palm oil and palm kernel oil, copra, cocoa, fish and minerals have dropped significantly during this period.
It noted that log dropped considerably by 31 percent to 148,237 cubic meters in May due to low number of shipment.
This was also attributed with the decline of international log prices which was noted for the fifth consecutive month in May which accounted for 3 percent to USD$295 per cubic meter from USD$305 per cubic meter a month ago.
This has felled 6 percent to the yearly log volumes compared to the corresponding period in 2012.
Palm oil output, on the same trend dropped by 15 percent to 2,723 tons in May, a back drop of 31 percent growth in the previous month.
Palm kernel oil likewise dropped by 11 percent to 282 tons compared to a strong growth the previous month.
The fall has been said to be due to the low fresh bunch harvests together with a mill shut down for seven days during the same month.
Year on year comparison showed the same with a fall of 19 percent output for palm oil and palm oil kernel at 25 percent compared to the previous year on the same period.
This is despite the improved price of palm oil to USD$849 per ton in May from USD842 per ton whilst palm kernel oil weakens further to USD827 on the same month.
Copra likewise experiences significant drop in its output by 38 percent to 717 tons on the same period continuing further with a fall of 2 percent in the previous month.
But despite this fall, international price has recovered by 6 percent following drops the previous two months to USD556 per ton, pushes the domestic market up from $1.99 per kilo to $2.07 per kilo.
Also experiencing fall is cocoa production, by 39 percent in May, a reverse to the revised 88 percent growth a month ago.
Whilst this is so, cocoa price on the international market remains positive with a 2 percent rise to USD2, 343 per ton in May alone.
With the contracted export price for local cocoa increased by 4 percent from GBP11, 240 per ton to GBP1, 295 the previous month, the domestic prices improved from $11.05 per kilo a month ago to $11.22 per kilo at the end of May.
Fish production following its 8 percent decline the month before May, fish catch gathered was a 2 percent slight increase to 1,412 tons.
Despite the slight improvement, year on year comparisons showed 36 percent contraction, although average international recovered significantly by 26 percent.
This is said to be driven by the high consumer demand for fresh tuna in the Japanese market which accounted for the increase of USD1, 756 per ton to USD2, 215 per ton.
Mineral production, one of the major export commodities indicated gold export volumes dropping 11 percent at 5,794 ounces in May.
Despite the drop, year on year comparison showed 68 percent growth whilst silver output almost contracted by 5 percent at 2,172 ounces.
This is so whilst in the international market, prices for gold declined for sixth consecutive month to USD1,414 ounce in May from USD1,488 per ounce a month ago.
Silver on the other hand dropped 9 percent to USD23.04 per ounce from USD25.36 per ounce on the same period.
According to the Central Bank of Solomon Islands quarterly bulletin report for May, domestic commodities like logs, palm oil and palm kernel oil, copra, cocoa, fish and minerals have dropped significantly during this period.
It noted that log dropped considerably by 31 percent to 148,237 cubic meters in May due to low number of shipment.
This was also attributed with the decline of international log prices which was noted for the fifth consecutive month in May which accounted for 3 percent to USD$295 per cubic meter from USD$305 per cubic meter a month ago.
This has felled 6 percent to the yearly log volumes compared to the corresponding period in 2012.
Palm oil output, on the same trend dropped by 15 percent to 2,723 tons in May, a back drop of 31 percent growth in the previous month.
Palm kernel oil likewise dropped by 11 percent to 282 tons compared to a strong growth the previous month.
The fall has been said to be due to the low fresh bunch harvests together with a mill shut down for seven days during the same month.
Year on year comparison showed the same with a fall of 19 percent output for palm oil and palm oil kernel at 25 percent compared to the previous year on the same period.
This is despite the improved price of palm oil to USD$849 per ton in May from USD842 per ton whilst palm kernel oil weakens further to USD827 on the same month.
Copra likewise experiences significant drop in its output by 38 percent to 717 tons on the same period continuing further with a fall of 2 percent in the previous month.
But despite this fall, international price has recovered by 6 percent following drops the previous two months to USD556 per ton, pushes the domestic market up from $1.99 per kilo to $2.07 per kilo.
Also experiencing fall is cocoa production, by 39 percent in May, a reverse to the revised 88 percent growth a month ago.
Whilst this is so, cocoa price on the international market remains positive with a 2 percent rise to USD2, 343 per ton in May alone.
With the contracted export price for local cocoa increased by 4 percent from GBP11, 240 per ton to GBP1, 295 the previous month, the domestic prices improved from $11.05 per kilo a month ago to $11.22 per kilo at the end of May.
Fish production following its 8 percent decline the month before May, fish catch gathered was a 2 percent slight increase to 1,412 tons.
Despite the slight improvement, year on year comparisons showed 36 percent contraction, although average international recovered significantly by 26 percent.
This is said to be driven by the high consumer demand for fresh tuna in the Japanese market which accounted for the increase of USD1, 756 per ton to USD2, 215 per ton.
Mineral production, one of the major export commodities indicated gold export volumes dropping 11 percent at 5,794 ounces in May.
Despite the drop, year on year comparison showed 68 percent growth whilst silver output almost contracted by 5 percent at 2,172 ounces.
This is so whilst in the international market, prices for gold declined for sixth consecutive month to USD1,414 ounce in May from USD1,488 per ounce a month ago.
Silver on the other hand dropped 9 percent to USD23.04 per ounce from USD25.36 per ounce on the same period.