Commodities - Southern Europe

Southern Europe

The nominal value in the Commodities market is projected to reach €5,115.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.99% resulting in a projected total amount of €6,220.00bn by 2029.
The average price per contract in the Commodities market amounts to €0.05 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€49,790.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 116.70m by 2029.

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Analyst Opinion

Amidst the diverse and dynamic financial landscape of Southern Europe, the Commodities market is experiencing notable trends and developments. Customer preferences in the Commodities market in Southern Europe are influenced by a variety of factors.

Investors in this region often show a preference for commodities that are traditionally considered safe-haven assets, such as gold and silver. These preferences are driven by a desire for stability and a hedge against economic uncertainty. Additionally, there is a growing interest in energy commodities, particularly as Southern Europe continues to focus on renewable energy sources.

Trends in the market indicate a shift towards sustainable investing within the Commodities sector in Southern Europe. With an increased emphasis on environmental, social, and governance (ESG) factors, investors are looking for opportunities that align with their values. This trend is driving the development of new financial products and instruments that cater to this growing demand for sustainable commodities.

Local special circumstances play a significant role in shaping the Commodities market in Southern Europe. The region's geographical location and climate make it particularly susceptible to fluctuations in commodity prices, especially those related to energy and agriculture. As a result, market participants in Southern Europe must navigate these unique challenges and adapt their strategies accordingly.

Underlying macroeconomic factors further contribute to the developments in the Commodities market in Southern Europe. Economic growth, inflation rates, and monetary policies adopted by central banks all play a crucial role in shaping investor sentiment and influencing commodity prices. As Southern Europe continues to recover from economic challenges, these macroeconomic factors will continue to impact the dynamics of the Commodities market in the region.

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.