Commodities - Central America

Central America

The nominal value in the Commodities market is projected to reach US$414.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.29% resulting in a projected total amount of US$511.10bn by 2029.
The average price per contract in the Commodities market amounts to US$0.13 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 3,416.00k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Central America is experiencing a notable shift driven by changing customer preferences, evolving trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Central America are increasingly leaning towards diversified investment options, including Commodities.

Investors are looking for ways to hedge risks and diversify their portfolios, leading to a growing interest in Commodities as a financial instrument. Trends in the market indicate a rising demand for Commodities trading in countries like Guatemala, Panama, and Costa Rica. This trend is fueled by the region's strategic location, favorable regulatory environment, and increasing awareness among investors about the potential benefits of investing in Commodities.

Local special circumstances, such as the region's proximity to major trade routes and its growing economy, are contributing to the development of the Commodities market in Central America. These circumstances create opportunities for investors to tap into global markets and leverage Commodities as part of their investment strategy. Underlying macroeconomic factors, such as currency fluctuations, geopolitical events, and global market trends, also play a significant role in shaping the Commodities market in Central America.

Investors are closely monitoring these factors to make informed decisions and capitalize on market opportunities. Overall, the Commodities market in Central America is evolving rapidly, driven by changing customer preferences, emerging trends, unique local circumstances, and underlying macroeconomic factors. Investors in the region are increasingly turning to Commodities as a key component of their investment strategy, seeking to optimize returns and manage risks in an ever-changing market environment.

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.