Commodities

The nominal value in the Commodities market is projected to reach US$1.37bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.57% resulting in a projected total amount of US$1.71bn by 2029.
The average price per contract in the Commodities market amounts to US$0.00 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 367.30k 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 Sierra Leone is experiencing a significant shift in recent times, reflecting both global trends and local economic conditions. Customer preferences in Sierra Leone are increasingly leaning towards more diverse investment options, including Commodities.

This shift can be attributed to a growing awareness of the potential returns and risk diversification that Commodities can offer to investors in the country. Trends in the market show a rising interest in Commodities trading among local investors and financial institutions in Sierra Leone. This trend is driven by the desire to hedge against inflation and currency fluctuations, as well as to take advantage of the potential for high returns in the Commodities market.

Local special circumstances, such as the country's reliance on mineral exports and fluctuating global commodity prices, play a significant role in shaping the Commodities market in Sierra Leone. The volatility in commodity prices has led to increased interest in Commodities trading as a way to mitigate risks and capitalize on market opportunities. Underlying macroeconomic factors, including government policies, economic stability, and global market conditions, also influence the development of the Commodities market in Sierra Leone.

As the country continues to focus on economic diversification and attracting foreign investment, the Commodities market is expected to play a crucial role in supporting these efforts and driving growth in the financial sector.

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.