Commodities

The nominal value in the Commodities market is projected to reach US$20.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.37% resulting in a projected total amount of US$24.44bn by 2029.
The average price per contract in the Commodities market amounts to US$0.06 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 377.50k 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 Malta is experiencing a notable shift in recent years, reflecting global trends and local economic developments.

Customer preferences: Traders and investors in Malta are showing an increasing interest in commodities as financial derivatives, seeking diversification and potential higher returns in their investment portfolios. The convenience and accessibility of trading platforms have made it easier for customers to participate in the commodities market.

Trends in the market: One prominent trend in the Maltese commodities market is the growing popularity of digital assets such as cryptocurrencies. With the rise of blockchain technology and the increasing acceptance of digital currencies worldwide, Maltese investors are exploring opportunities in this relatively new asset class. Additionally, traditional commodities like gold and oil remain attractive to investors in Malta, especially during times of economic uncertainty.

Local special circumstances: Malta's strategic location in the Mediterranean region and its status as a financial hub within the European Union contribute to the development of its commodities market. The country's stable regulatory environment and growing financial services sector have attracted international investors looking to access the commodities market through Maltese platforms.

Underlying macroeconomic factors: Economic growth, inflation rates, and global trade dynamics play a significant role in shaping the commodities market in Malta. As the Maltese economy continues to expand and diversify, investors are drawn to commodities as a way to hedge against inflation and geopolitical risks. Furthermore, fluctuations in global commodity prices impact the local market, influencing trading activities and investment strategies in Malta.

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.