Commodities - Latvia

Latvia

The nominal value in the Commodities market is projected to reach US$48.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.99% resulting in a projected total amount of US$58.85bn by 2029.
The average price per contract in the Commodities market amounts to US$0.11 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 469.30k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Latvia has shown a significant increase in trading activity over the past few years.

Customer preferences: Traders in Latvia have shown a growing interest in Commodities as a way to diversify their investment portfolios and hedge against market volatility. The appeal of Commodities lies in their potential for high returns and the opportunity to speculate on price movements.

Trends in the market: One notable trend in the Latvian Commodities market is the increasing popularity of online trading platforms, which have made it easier for retail investors to participate in Commodities trading. This accessibility has led to a surge in trading volume and has attracted a new generation of investors looking to capitalize on market opportunities.

Local special circumstances: Latvia's strategic location as a gateway between East and West has positioned it as a key player in the European Commodities market. The country's well-developed infrastructure and business-friendly environment have attracted foreign investors looking to access the region's growing market potential. Additionally, Latvia's stable political climate and commitment to economic growth have created a favorable environment for Commodities trading.

Underlying macroeconomic factors: The growth of the Latvian economy and the increasing integration of the country into the global market have contributed to the development of the Commodities market. As Latvia continues to strengthen its position as a financial hub in the Baltic region, the demand for Commodities trading is expected to rise further. Additionally, factors such as inflation, interest rates, and geopolitical events play a significant role in shaping investor sentiment and driving market trends in Latvia.

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.