Commodities

Market Insights Financial

Worldwide

The nominal value in the Commodities market worldwide is forecasted to reach US$131,300.00bn in 2024.
It is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of 1.49%, leading to a projected total of US$139,300.00bn by 2028.
The average price per contract in the Commodities market stands at US$0.02 in 2024.
When compared globally, the United States achieves the highest nominal value at US$45,690.00bn in 2024.
The number of contracts in the Commodities market is expected to reach 5,594.00m by 2028.
Amid global uncertainties, investors worldwide are flocking to commodity futures in the derivatives market as a hedge against inflation and market volatility.

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.

in-scope

Options & Futures
Precious Metal Derivatives
Industry Metal Derivatives
Energy Product Derivatives
Agricultural Product Derivatives
Emission Trading System

out-of-scope

Physical commodities
Other Derivative types
other Commodity Types

Precious Metal Derivatives
Industry Metal Derivatives
Energy Product Derivatives
Agricultural Product Derivatives
Emission Trading System

Related markets:

Capital Raising

Digital Assets

Real Estate

Banking

Wealth Management

Analyst Opinion

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 circ*mstances:
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.

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.

Overview

Value Development
Volume
Analyst Opinion
Share development
Methodology
Key Market Indicators

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FAQs

Commodities - Worldwide | Statista Market Forecast? ›

The nominal value in the Commodities market is projected to reach US$121,200.00bn 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$136,800.00bn by 2029.

Read On ›

What is the commodities market forecast? ›

Commodity prices are projected to experience a slight downturn in 2024 and 2025 but are expected to remain above pre-pandemic levels. Energy prices are expected to decline by 3 percent in 2024, as notably lower prices of natural gas and coal offset higher oil prices, followed by a further decline of 4 percent in 2025.

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Are commodities going up or down? ›

Commodity prices have been relatively flat overall since late 2023. However, prices of some key commodities such as oil and copper are trending higher in 2024. Global economic growth trends often play a significant role influencing commodities markets.

Is there a future in commodity trading? ›

Indeed, commodity trading is on the cusp of the next normal. The energy transition now under way is an economic and physical transformation that cuts across and integrates the various global food, energy, and materials systems.

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Is it a good time to buy commodities? ›

There is no specific time that constitutes the best time to buy commodities. Commodities are a hedge against inflation, so buying before periods of high inflation is a good investment strategy; however, predicting when inflation will occur can be tough.

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What is the commodities market outlook for 2024? ›

After three years of extreme volatility, commodities prices are set to broadly stabilise in 2024. However, adverse weather conditions, escalating geopolitical tensions and soaring shipping costs are among the risks to watch to commodity price forecasts.

Tell Me More ›

What is the World Bank projection for commodity prices? ›

Since mid-2023, however, the World Bank's index of commodity prices has remained essentially unchanged. Assuming no further flare-up in geopolitical tensions, the Bank's forecasts call for a decline of 3% in global commodity prices in 2024 and 4% in 2025.

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What is a hot commodity right now? ›

Commodities Top Performers Trade Now

EEX Strompreis Phelix DE	3.26%	99.90 EUR
Tin	2.73%	30,001.00 USD
Coal	1.14%	106.70 USD
Lumber	0.92%	495.00 USD
Rice	0.75%	14.87 USD

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Will commodities make a comeback? ›

We believe a longer-term commodities bull market could resume in 2024 as they act as a hedge against global conflict and inflation.

Why do commodities fall when the dollar rises? ›

The dollar's value tends to impact commodity prices because the US dollar is the most common pricing and settlement currency for commodities. When the dollar appreciates against other currencies, commodities become more expensive on the world stage, which can depress overall demand. As consumption falls, so do prices.

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Who are the big 4 commodity traders? ›

Overview. The world's largest commodity traders have a significant impact on the modern agri-food system. Archer Daniels Midland (ADM), Bunge, Cargill and Louis Dreyfus, are dominant traders of grain globally and central to the food system, but their role is poorly understood.

Read The Full Story ›

What is the largest commodity in the world? ›

What About Crude Oil? Crude oil is by far the biggest commodity market, and oil prices were the talk of the town for much of 2022.

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What are future facing commodities? ›

5. As the name would suggest, future-facing commodities are those that will carry humanity forward as we take on the momentous task of decarbonising the world. These are the commodities that are essential to the energy transition, including lithium, nickel, cobalt, manganese, graphite and copper.

Get More Info Here ›

Do commodities do well in a recession? ›

What happens to commodities in a recession? As a general rule, when economies slow, industrial outputs decline due to fewer infrastructure projects and house building, causing the demand for commodities to fall and prices to decline.

What are the top 3 commodities to invest in? ›

You can invest in commodities in a range of ways. Today, the top three in the list of commodities are crude oil, gold and base metals. It is worth taking a look at all three and finding out how to invest. Crude Oil - After crude oil is produced, it is refined into several products.

Why are commodities falling? ›

Agricultural commodities see sharp declines

Rice prices fell following news that India will lift restrictions on rice exports, easing supply concerns. Corn prices also declined due to demand concerns amid falling oil prices.

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What is the iron ore market outlook for 2024? ›

In 2024, nickel, iron ore, and zinc prices are projected to post the most significant declines year-on-year, at 21%, 9%, and 6%, respectively.

When the price of a commodity rises the demand will fall? ›

When the price of a commodity rises the demand will fall. Quantity demanded and price are inversely related this means that as the price of the goods increase the demand of that commodity decreases and vice versa. This is because of the law of diminishing marginal utility.

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What are the top 3 commodities to invest? ›

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What is the price forecast for CPO in 2024? ›

Overall, CIMB forecasts CPO to average marginally higher at RM3,900 in 2024 compared with RM3,809 in 2023. For the long term, the research house expects CPO to average RM3,500 due to increased production costs over the years.

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