Commodities - Colombia

Colombia

The nominal value in the Commodities market in Colombia is forecasted to reach US$540.90bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.22%, resulting in a projected total amount of US$614.10bn by 2028.
The average price per contract in the Commodities market in Colombia stands at US$0.40 in 2024.
When considering a global comparison, it is observed that the highest nominal value is achieved the in the United States (US$45,690.00bn in 2024).
In the Commodities market in Colombia, the number of contracts is estimated to reach 1,402.00k by 2028.
Colombia's commodities market is experiencing a surge in trading volume, reflecting growing investor interest in diversifying portfolios with commodity-based financial instruments.

Market

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Currency

Analyst Opinion

The Commodities market in Colombia has been experiencing significant growth and development in recent years. Customer preferences in Colombia are shifting towards more diverse investment options, with a growing interest in Commodities as a way to diversify portfolios and hedge against market volatility.

Trends in the market show an increase in trading volume and liquidity for Commodities, driven by a combination of factors such as regulatory reforms, technological advancements, and a growing number of market participants. Local special circumstances, such as Colombia's strategic geographical location and its strong ties to global markets, play a crucial role in shaping the Commodities market in the country. Additionally, the government's efforts to promote the development of the financial sector and attract foreign investment have also contributed to the market's growth.

Underlying macroeconomic factors, including stable economic growth, low inflation rates, and a relatively stable political environment, provide a favorable backdrop for the expansion of the Commodities market in Colombia. These factors instill confidence in investors and create a conducive environment for market development and innovation.

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.