Commodities

The nominal value in the Commodities market is projected to reach US$14.67bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.19% resulting in a projected total amount of US$18.02bn by 2029.
The average price per contract in the Commodities market amounts to US$0.03 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 419.50k 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 Namibia is experiencing a shift in dynamics that is influenced by various factors.

Customer preferences: Investors in Namibia are increasingly turning to commodities as a way to diversify their portfolios and hedge against market volatility. The ability to trade commodities provides them with a unique opportunity to access global markets and potentially earn higher returns.

Trends in the market: One notable trend in the Namibian Commodities market is the growing interest in gold and silver derivatives. This trend is fueled by global economic uncertainties and inflation concerns, prompting investors to seek safe-haven assets. Additionally, there is a rising demand for energy commodities, such as oil and natural gas, as Namibia continues to develop its energy sector.

Local special circumstances: Namibia's economy is heavily reliant on mining activities, particularly in the diamond sector. This dependence on mining has a direct impact on the Commodities market, as fluctuations in commodity prices can significantly affect the country's economic stability. As a result, there is a strong correlation between the performance of the mining sector and the demand for commodities trading in Namibia.

Underlying macroeconomic factors: The overall economic growth and stability of Namibia play a crucial role in shaping the Commodities market. Factors such as inflation rates, exchange rate fluctuations, and government policies can all impact investor sentiment and drive the demand for commodities. Additionally, global market trends and geopolitical events have a ripple effect on the Namibian Commodities market, influencing trading volumes and price movements.

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.