Commodities - Brazil

Brazil

The nominal value in the Commodities market in Brazil is forecasted to reach US$1,554.00bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 4.31%, leading to a projected total amount of US$1,840.00bn by 2028.
The average price per contract in the Commodities market in Brazil stands at US$0.26 in 2024.
When considering a global perspective, it is evident that the in the United States achieves the highest nominal value (US$45,690.00bn in 2024) in the Commodities market.
The number of contracts in the Commodities market in Brazil is expected to reach 6,215.00k by 2028.
Brazil's growing interest in commodity derivatives is reshaping the country's investment landscape and diversifying portfolios in the financial market.

Market

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Currency

Analyst Opinion

The Commodities market in Brazil has been experiencing a notable shift in recent years. Customer preferences in the Brazilian Commodities market are leaning towards more diversified investment options, with a growing interest in alternative investment products.

Investors are increasingly looking for ways to hedge risks and maximize returns, leading to a surge in the trading of financial derivatives. Trends in the market indicate a rise in the trading volume of Commodities futures and options in Brazil. This trend can be attributed to the increasing sophistication of investors, who are seeking exposure to different asset classes beyond traditional stocks and bonds.

The development of financial markets and the expansion of online trading platforms have also contributed to the growth of the Commodities market in Brazil. Local special circumstances, such as the country's rich natural resources and agricultural production, play a significant role in shaping the Commodities market in Brazil. The abundance of commodities like soybeans, sugar, coffee, and iron ore provides a strong foundation for the market, attracting both domestic and international investors looking to capitalize on price fluctuations.

Underlying macroeconomic factors, including inflation rates, interest rates, and government policies, also influence the dynamics of the Commodities market in Brazil. Economic stability and regulatory frameworks impact investor confidence and participation in the market, shaping the overall growth and development of Commodities trading in the country.

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.