Commodities - Caribbean

Caribbean

The nominal value in the Commodities market is projected to reach US$504.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.37% resulting in a projected total amount of US$655.20bn by 2029.
The average price per contract in the Commodities market amounts to US$0.16 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 3,252.00k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Caribbean has been showing interesting trends and developments recently. Customer preferences in the Caribbean Commodities market are shifting towards more diverse investment options, driven by a growing interest in hedging strategies and portfolio diversification.

Investors are increasingly looking for alternative assets to traditional stocks and bonds, leading to a rise in the demand for commodities as a financial instrument. Trends in the Caribbean Commodities market indicate a growing participation from institutional investors, seeking exposure to commodities as a way to manage risk and enhance returns. This trend is also influenced by global market dynamics and geopolitical events, which impact commodity prices and create trading opportunities for investors in the region.

Local special circumstances in the Caribbean, such as geographic location and economic dependencies, play a role in shaping the Commodities market. The region's reliance on imports for certain commodities and its vulnerability to external shocks can impact price movements and trading activities in the market. Underlying macroeconomic factors, including currency fluctuations, inflation rates, and trade policies, have a significant influence on the Commodities market in the Caribbean.

Investors closely monitor these factors to make informed decisions and navigate the volatility in commodity prices, which can be affected by both local and global economic conditions.

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.