Commodities

The nominal value in the Commodities market is projected to reach US$176.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.55% resulting in a projected total amount of US$210.20bn by 2029.
The average price per contract in the Commodities market amounts to US$0.05 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 3.94m 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 Malaysia is experiencing a shift in customer preferences towards more diverse investment options. Investors are increasingly looking for opportunities to diversify their portfolios and manage risks through exposure to different types of Commodities.

Customer preferences: Investors in Malaysia are showing a growing interest in alternative investment options within the Commodities market, such as futures and options. This shift can be attributed to a desire for portfolio diversification and risk management. Additionally, investors are seeking higher potential returns that these financial derivatives can offer compared to traditional investments.

Trends in the market: One noticeable trend in the Malaysian Commodities market is the increasing trading volume of financial derivatives. This trend is driven by the growing number of sophisticated investors who are looking to capitalize on price movements in the market. Additionally, advancements in technology have made it easier for retail investors to access and trade these financial instruments.

Local special circumstances: In Malaysia, the Commodities market is heavily influenced by the performance of the palm oil industry. As one of the world's largest producers of palm oil, Malaysia plays a significant role in setting global prices for this commodity. Therefore, fluctuations in the palm oil market can have a direct impact on the performance of Commodities derivatives in the country.

Underlying macroeconomic factors: The development of the Commodities market in Malaysia is also influenced by broader macroeconomic factors such as global trade dynamics and geopolitical events. As a major player in the global Commodities market, Malaysia is susceptible to changes in international trade policies and economic conditions. These factors can impact the demand and prices of Commodities derivatives in the country.

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.