Commodities

The nominal value in the Commodities market is projected to reach US$2.94tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.11% resulting in a projected total amount of US$3.43tn by 2029.
The average price per contract in the Commodities market amounts to US$0.08 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$53.69tn in 2024).
In the Commodities market, the number of contracts is expected to amount to 39.64m by 2029.

Definition:

The commodities market refers to derivatives of commodities. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of Gold, an investor could own a derivative of Gold). Therefore, physical commodities are out of scope in this analysis.

Structure:

The commodities market comprises derivatives of precious metals, industrial metals, energy products, agricultural products & the Emission Trade System. The segments of precious metals, industrial metals, energy products, and agricultural products are also providing price data of popular specific derivatives. The segment data of the Emission Trade System (ETS) is only provided for countries where an ETS is in place (therefore the number of countries where data is shown is reduced in comparison to other segments).

Additional information:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year) as well as the average notional value per contract. Furthermore, the share of futures and options is provided for these KPIs to display even more insights into this market.

Options & Futures
Precious Metal Derivatives
Industry Metal Derivatives
Energy Product Derivatives
Agricultural Product Derivatives
Emission Trading System

Physical commodities
Other Derivative types
other Commodity Types

The Commodities market in Africa has been experiencing significant growth and development in recent years. Customer preferences in the African Commodities market are shifting towards more diverse investment options, with an increasing demand for alternative investment products.

Investors are looking for ways to diversify their portfolios and manage risk, leading to a growing interest in Commodities as a financial asset class. Trends in the market show a rise in the trading volume of Commodities derivatives in countries like Nigeria, South Africa, and Kenya. This trend is driven by a combination of factors such as increasing awareness about the benefits of Commodities trading, improving regulatory frameworks, and the integration of technology in trading platforms.

Local special circumstances in African countries play a significant role in shaping the Commodities market. For example, in Nigeria, the volatility of the local currency and the dependence on oil exports impact the demand for Commodities as a hedging tool against currency fluctuations. In South Africa, the presence of a well-established financial market infrastructure contributes to the growth of Commodities trading.

Underlying macroeconomic factors, such as economic growth, inflation rates, and political stability, also influence the development of the Commodities market in Africa. Countries with stable economic conditions and favorable regulatory environments tend to attract more investors to the Commodities market, driving liquidity and market growth. Additionally, the integration of African economies into the global financial system has opened up new opportunities for investors looking to access the African Commodities market.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.