Commodities

The nominal value in the Commodities market is projected to reach US$510.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.92% resulting in a projected total amount of US$649.70bn by 2029.
The average price per contract in the Commodities market amounts to US$0.37 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 1.52m 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 Colombia has been experiencing significant growth and development in recent years. Customer preferences in Colombia are shifting towards more diverse investment options, with a growing interest in Commodities as a way to diversify portfolios and hedge against market volatility.

Trends in the market show an increase in trading volume and liquidity for Commodities, driven by a combination of factors such as regulatory reforms, technological advancements, and a growing number of market participants. Local special circumstances, such as Colombia's strategic geographical location and its strong ties to global markets, play a crucial role in shaping the Commodities market in the country. Additionally, the government's efforts to promote the development of the financial sector and attract foreign investment have also contributed to the market's growth.

Underlying macroeconomic factors, including stable economic growth, low inflation rates, and a relatively stable political environment, provide a favorable backdrop for the expansion of the Commodities market in Colombia. These factors instill confidence in investors and create a conducive environment for market development and innovation.

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.