Commodities - Canada

Canada

The nominal value in the Commodities market is projected to reach €2,204.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.84% resulting in a projected total amount of €2,535.00bn by 2029.
The average price per contract in the Commodities market amounts to €0.46 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€49,270.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 5.10m by 2029.

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Analyst Opinion

The Commodities market in Canada has been experiencing a significant shift in recent years, driven by various factors influencing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Canada, investors have shown a growing interest in commodities as a way to diversify their investment portfolios and hedge against market volatility. With the rise of online trading platforms, retail investors are increasingly participating in the commodities market, seeking opportunities for potential high returns.

Trends in the market: One notable trend in the Canadian Commodities market is the increasing demand for energy commodities, particularly in the form of futures contracts. This trend is influenced by Canada's status as a major energy producer, with a significant portion of its exports consisting of crude oil and natural gas. As global energy consumption continues to rise, the demand for energy commodities in Canada is expected to remain strong.

Local special circumstances: Canada's commodities market is also influenced by its unique geographic and economic factors. The country's vast natural resources, including oil sands, minerals, and agricultural products, play a crucial role in shaping the commodities market. Additionally, Canada's close trade relationship with the United States and other global partners has a direct impact on the flow of commodities in the market.

Underlying macroeconomic factors: The performance of the Canadian commodities market is closely tied to global economic conditions and market dynamics. Factors such as interest rates, inflation, exchange rates, and geopolitical events can all influence commodity prices in Canada. As a result, market participants closely monitor these macroeconomic factors to make informed trading decisions in the commodities market. Overall, the Commodities market in Canada is evolving in response to changing customer preferences, market trends, local circumstances, and macroeconomic factors. With a focus on energy commodities, increased retail investor participation, and the influence of global economic conditions, the Canadian commodities market continues to present opportunities for investors seeking exposure to this dynamic asset class.

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.