Commodities - Chile

Chile

The nominal value in Chile's Commodities market is forecasted to reach US$487.20bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.28%, resulting in a projected total amount of US$554.40bn by 2028.
The average price per contract in Chile's Commodities market stands at US$0.13 in 2024.
When compared globally, the highest nominal value is achieved the in the United States (US$45,690.00bn in 2024).
In Chile's Commodities market, the number of contracts is expected to reach 3,703.00k by 2028.
Chile's commodities market is seeing increased interest in derivative contracts, reflecting a growing appetite for financial instruments among local investors.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Chile has been experiencing a notable shift in recent years, reflecting changing customer preferences and local special circumstances.

Customer preferences: Customers in Chile have shown a growing interest in commodities trading, seeking diversification in their investment portfolios and looking for alternative assets to traditional stocks and bonds. The appeal of commodities lies in their potential for high returns and as a hedge against inflation and economic uncertainties.

Trends in the market: One of the key trends in the Chilean Commodities market is the increasing participation of retail investors. As more retail investors gain access to online trading platforms and educational resources, they are actively engaging in commodities trading. This trend is driving liquidity in the market and contributing to the overall growth of the sector.

Local special circumstances: Chile's strong mining industry plays a significant role in shaping the Commodities market. As one of the world's largest producers of copper, the country's economy is closely tied to the performance of this commodity. Fluctuations in copper prices have a direct impact on Chile's GDP and government revenues, influencing investor sentiment and trading activity in the Commodities market.

Underlying macroeconomic factors: The stability of Chile's economy and its sound regulatory framework have been instrumental in attracting foreign investors to the Commodities market. Additionally, the country's strong trade relationships with global markets provide ample opportunities for commodities trading. Macroeconomic factors such as interest rates, exchange rates, and global demand for commodities also influence the dynamics of the market in Chile.

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.