Commodities

The nominal value in the Commodities market is projected to reach US$203.60bn 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$245.00bn 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 United States (US$53.69tn in 2024).
In the Commodities market, the number of contracts is expected to amount to 1.26m 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 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.

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.