Commodities

The nominal value in the Commodities market is projected to reach US$2.72bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.49% resulting in a projected total amount of US$3.55bn by 2029.
The average price per contract in the Commodities market amounts to US$0.00 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 615.90k 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 Azerbaijan has been showing interesting developments in recent years.

Customer preferences: Traders in Azerbaijan have shown a growing interest in investing in commodities as a way to diversify their portfolios and hedge against market volatility. The appeal of commodities lies in their potential for high returns and as a way to spread risk across different asset classes.

Trends in the market: One notable trend in the Azerbaijani Commodities market is the increasing popularity of trading in energy commodities such as oil and natural gas. Given Azerbaijan's position as a major oil and gas producer, local traders have a natural inclination towards these assets. Additionally, there has been a rise in trading activity in precious metals like gold and silver, reflecting a global trend towards safe-haven assets.

Local special circumstances: The geopolitical situation in the region plays a significant role in shaping the Commodities market in Azerbaijan. The country's strategic location between Europe and Asia, as well as its rich energy resources, influence the types of commodities that are actively traded. Moreover, government policies and regulations regarding commodity trading also impact market dynamics.

Underlying macroeconomic factors: Economic stability and growth prospects in Azerbaijan have a direct impact on the Commodities market. Traders closely monitor factors such as GDP growth, inflation rates, and currency exchange rates to make informed decisions. Additionally, global economic trends and geopolitical events can have ripple effects on the Azerbaijani Commodities market, leading to fluctuations in prices and trading volumes.

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.