Commodities - Worldwide | Statista Market Forecast (2024)

FAQs

Commodities - Worldwide | Statista Market Forecast? ›

The nominal value in the Commodities market worldwide is forecasted to reach US$131,300.00bn in 2024. It is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of 1.49%, leading to a projected total of US$139,300.00bn by 2028.

After three years of extreme volatility, commodities prices are set to broadly stabilise in 2024. However, adverse weather conditions, escalating geopolitical tensions and soaring shipping costs are among the risks to watch.

Between mid-2022 and mid-2023, global commodity prices plummeted by nearly 40%. This helped to drive most of the roughly 2-percentage-point reduction in global inflation between 2022 and 2023. Since mid-2023, however, the World Bank's index of commodity prices has remained essentially unchanged.

Three of the most commonly traded commodities include oil, gold, and base metals.

The World Bank commodity price index is expected to fall 4 percent in 2024, following a projected decline of nearly 24 percent in 2023, the sharpest drop since the pandemic. Energy prices are expected to decline by almost 5 percent in 2024 and remain relatively stable in 2025.

Prices of commodities will likely decline marginally in 2024 and 2025 but they will remain 38 per cent above pre-pandemic levels, the World Bank has said in its latest Commodity Markets Outlook. In all, disinflationary tailwinds from moderating commodity prices appear essentially over, it said.

A GlobalData poll found that gold, lithium, and copper are among the commodities set to see the greatest price increases in 2024. The lower price of lithium has been attributed to weaker-than-expected demand for EVs.

Precious metals, like gold or silver, tend to perform well during market slowdowns. But since the demand for these kinds of commodities often increases during recessions, their prices usually go up too.

Commodities stand to benefit from underinvestment and the clean energy transition. PIMCO has a positive outlook for commodities based on supply constraints, the transition to a net-zero economy, and their historical correlation with inflation.

Opinions are the cheapest commodities on earth. Everyone has a flock of opinions ready to be wished upon anyone who will accept them.

What is the most bought commodity in the world? ›

What About Crude Oil? Crude oil is by far the biggest commodity market, and oil prices were the talk of the town for much of 2022.

Popular commodities for investment

Of these, oil has the biggest market, but gold is the most popular commodity for holding long term because of its role as a risk hedge, according to Minter.

Commodity prices have been relatively flat overall since the fall of 2023. However, prices of some key commodities such as oil and copper trended higher in 2024's opening months. Commodity demand may be strengthening as the global economy improves.

Supply and demand play a big role in the way commodities are priced in the market. When supply is low, demand is high, which leads to higher prices. Prices drop when the situation reverses—when supply is high and demand is low.

Few assets benefit from rising inflation, particularly unexpected inflation, but commodities usually do. As the demand for goods and services increases, the price of goods and services rises as does the price of the commodities used to produce those goods and services.

When inflation is high, the prices of most goods tend to go up. Investing in commodities can be a good way to make money. Because of this, there is a strong global demand for investing in commodity futures, even though prices are sensitive to currency exchange rates, interest rates, and changes in the market.

Futures are a type of financial derivative in which you agree to buy or sell a certain asset at a certain price at a particular time in the future. Commodities are a type of asset representing fungible goods, such as oil, iron ore, or wheat. Commodities are usually traded using futures.

We forecast the Brent crude oil price will decrease year-over-year from an average $90/b in 4Q24 to an average $86/b in 4Q25, with annual averages of $89/b in 2024 and $87/b in 2025.

Trade in agricultural and fisheries commodities should expand over the coming decade at around 1.3 percent annually, slower than over the past decade (3.3 percent average), as growth in global import demand is expected to slow.