Commodities

The nominal value in the Commodities market is projected to reach US$121.20tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.45% resulting in a projected total amount of US$136.80tn by 2029.
The average price per contract in the Commodities market amounts to US$0.02 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 5.71bn 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 is a dynamic and ever-evolving sector that plays a crucial role in the global economy.

Customer preferences: Investors Worldwide are increasingly turning to Commodities as a way to diversify their portfolios and hedge against inflation and market volatility. The appeal of Commodities lies in their ability to provide a unique source of returns that is not directly correlated with traditional asset classes.

Trends in the market: In Asia, there is a growing interest in Commodities trading, driven by the region's economic growth and the increasing sophistication of financial markets. Countries like China and India are leading the way in this trend, with investors looking to capitalize on the rising demand for raw materials and energy.

Local special circumstances: In Europe, the Commodities market is influenced by a combination of regulatory factors and geopolitical events. The region's strict regulatory environment has led to increased scrutiny of Commodities trading practices, while ongoing geopolitical tensions have created uncertainty in the market.

Underlying macroeconomic factors: The performance of the Commodities market in Latin America is closely tied to the region's reliance on commodity exports. Fluctuations in global demand and commodity prices have a direct impact on the economic stability of countries in Latin America, making the region particularly sensitive to external market forces.

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.