Commodities - Benin

Benin

The nominal value in the Commodities market is projected to reach US$14.68bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.31% resulting in a projected total amount of US$18.13bn by 2029.
The average price per contract in the Commodities market amounts to US$0.03 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 542.90k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Benin is experiencing a shift in customer preferences towards more diverse investment options.

Customer preferences: Investors in Benin are increasingly looking for alternative investment opportunities beyond traditional financial instruments. The demand for commodities as an investment vehicle has been on the rise as investors seek to diversify their portfolios and hedge against market volatility.

Trends in the market: The Commodities market in Benin is witnessing a growing interest in commodity derivatives such as futures and options. This trend can be attributed to the potential for higher returns compared to traditional investments, as well as the opportunity to speculate on price movements in various commodity markets.

Local special circumstances: Benin's geographical location and economic structure play a significant role in shaping the Commodities market in the country. As a West African nation with a strong agricultural sector, commodities such as cocoa, cotton, and coffee hold particular relevance in the market. The local demand for these commodities, coupled with international trade dynamics, influences the trading activities in the Commodities market.

Underlying macroeconomic factors: The macroeconomic environment in Benin, including factors such as inflation rates, interest rates, and GDP growth, influences the performance of the Commodities market. Economic stability and government policies play a crucial role in shaping investor sentiment and participation in the market. Additionally, global market trends and geopolitical events can impact commodity prices, thereby affecting the overall dynamics of the Commodities market in Benin.

Methodology

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.