Commodities - Bangladesh

Bangladesh

The nominal value in Bangladesh's Commodities market is forecasted to reach US$61.24bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.46%, resulting in a projected total amount of US$70.17bn by 2028.
The average price per contract in the Commodities market stands at US$0.04 in 2024.
When compared globally, the in the United States reaches the highest nominal value (US$45,690.00bn in 2024).
In Bangladesh's Commodities market, the number of contracts is expected to reach 1,683.00k by 2028.
Bangladesh's Commodities market is seeing a rise in trading of futures contracts, indicating growing investor interest in the financial derivatives sector.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Bangladesh has been experiencing a significant growth in recent years.

Customer preferences: Bangladeshi investors have shown a growing interest in diversifying their investment portfolios by including commodities. This shift in preference can be attributed to the potential for higher returns compared to traditional investment options.

Trends in the market: One of the key trends in the Commodities market in Bangladesh is the increasing popularity of commodity futures trading. Investors are drawn to the potential for profit through speculation on the future price movements of various commodities. This trend aligns with the global rise in commodity trading activity, reflecting a growing appetite for alternative investment opportunities.

Local special circumstances: Bangladesh's economy heavily relies on agriculture, making commodities like rice, jute, and tea integral to the country's market dynamics. As a result, local investors closely monitor the performance of these key commodities in both domestic and international markets. The unique reliance on agricultural commodities sets Bangladesh apart from other regions and influences trading behavior in the local Commodities market.

Underlying macroeconomic factors: The steady economic growth and increasing disposable income levels in Bangladesh have provided a conducive environment for the development of the Commodities market. As more individuals seek avenues for wealth creation, the demand for diversified investment options, including commodities, continues to rise. Additionally, government initiatives to promote the financial market and attract foreign investment have further bolstered the growth of the Commodities market in Bangladesh.

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.