Commodities - South America

South America

The nominal value in the Commodities market in South America is forecasted to reach US$4,160.00bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.70% leading to a projected total amount of US$4,811.00bn by 2028.
The average price per contract in the Commodities market in South America stands at US$0.24 in 2024.
When compared globally, the in the United States has the highest nominal value (US$45,690.00bn in 2024).
In the Commodities market in South America, the number of contracts is expected to reach 17.83m by 2028.
In the South American Commodities market, Brazil's soybean futures are experiencing an upward trend due to global demand and favorable weather conditions.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in South America is experiencing a significant uptrend in recent years.

Customer preferences: Investors in South America are increasingly showing a preference for investing in commodities as a way to diversify their portfolios and hedge against market volatility. The appeal of commodities lies in their potential for high returns and as a way to spread risk across different asset classes.

Trends in the market: Brazil, as one of the largest economies in South America, is driving the growth in the commodities market in the region. The country's rich natural resources, including oil, soybeans, and iron ore, make it a key player in the global commodities market. Investors are closely monitoring the political and economic developments in Brazil, as they have a direct impact on commodity prices and market sentiment.

Local special circumstances: Countries like Chile and Peru are known for their copper production, which plays a crucial role in the commodities market. The demand for copper, driven by infrastructure development and technological advancements, has been a key factor in shaping the commodities market trends in these countries. Additionally, political stability and regulatory frameworks in these nations play a significant role in attracting foreign investments in the commodities sector.

Underlying macroeconomic factors: The overall economic growth and stability in South America influence the commodities market trends in the region. Factors such as inflation rates, exchange rates, and interest rates impact investor confidence and their decisions to invest in commodities. Additionally, global economic conditions and geopolitical events also have a ripple effect on the commodities market in South America.

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.