Commodities - Uruguay

Uruguay

Uruguay is expected to see the nominal value in the Commodities market reach US$104.30bn in 2024.
This projection indicates an annual growth rate (CAGR 2024-2028) of 3.33%, resulting in a projected total amount of US$118.90bn by 2028.
The average price per contract in the Commodities market for Uruguay stands at US$0.18 in 2024.
When compared globally, it is noted that the highest nominal value is reached the in the United States (US$45,690.00bn in 2024).
Looking ahead, in Uruguay is expected to have the number of contracts in the Commodities market amount to 600.50k by 2028.
Uruguay's growing interest in commodities futures reflects a shift towards diversification and risk management in the country's financial market.

Market

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Currency

Analyst Opinion

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

Customer preferences: Uruguayan investors have shown a growing interest in Commodities as a form of investment, seeking diversification and potential high returns. They are attracted to the volatility and liquidity of Commodities, which offer opportunities for profit in a relatively short period.

Trends in the market: The Commodities market in Uruguay has been witnessing an increase in trading volume and value, reflecting the growing participation of local investors. This trend is driven by the availability of online trading platforms, which have made it easier for individuals to access and trade Commodities. Additionally, the government's efforts to promote the financial market and attract foreign investment have contributed to the development of the Commodities market.

Local special circumstances: Uruguay's stable political environment and strong economic performance have created a favorable climate for investment, including in the Commodities market. The country's strategic location as a gateway to South America and its well-developed financial infrastructure have also played a role in attracting investors to the market. Moreover, the presence of experienced financial institutions and professionals has provided the necessary support and expertise for investors interested in Commodities trading.

Underlying macroeconomic factors: Uruguay's robust economic growth, low inflation rate, and sound monetary policies have bolstered investor confidence in the Commodities market. The country's strong agricultural sector, which is a key player in the global Commodities market, has further fueled interest in Commodities trading among local investors. Additionally, Uruguay's trade agreements with other countries have opened up opportunities for Commodities trading on an international scale, adding to the market's appeal.

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.