Commodities - New Zealand

New Zealand

The nominal value in the Commodities market is projected to reach US$203,600.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.77% resulting in a projected total amount of US$245,000.00m by 2029.
The average price per contract in the Commodities market amounts to US$0.18 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 1,256.00k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in New Zealand has been experiencing a notable shift in recent years, reflecting changing customer preferences and local special circumstances.

Customer preferences: Customers in New Zealand have shown a growing interest in diversifying their investment portfolios through Commodities. This trend is in line with global market behavior, where investors seek alternative assets to hedge against market volatility and inflation.

Trends in the market: In New Zealand, there has been a noticeable increase in the trading volume of Commodities, indicating a higher level of participation from both retail and institutional investors. This surge can be attributed to the ease of access to online trading platforms and the availability of a wide range of Commodities products.

Local special circumstances: New Zealand's strong agricultural sector plays a significant role in shaping the Commodities market. The country's reliance on agricultural exports like dairy and meat influences the trading dynamics of related Commodities such as dairy futures. Additionally, the country's proximity to Asia-Pacific markets drives demand for Commodities linked to the region's economic performance.

Underlying macroeconomic factors: The performance of the New Zealand dollar against major currencies impacts the Commodities market in the country. As a commodity-driven economy, fluctuations in currency values can influence the attractiveness of Commodities trading for investors. Furthermore, government policies and regulations regarding the financial markets also play a crucial role in shaping the Commodities landscape in New Zealand.

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.