Back to the futures: New attitudes toward commodities will boost industry revenue

Revenue is projected to decrease over the five years to 2017. Consumption of commodities surged post recession, when emerging markets, like China, returned the world economy to growth. Due to rising commodity prices, the volume of traded commodities increased rapidly, boosting industry revenue. However, slowing growth in China and sluggish growth in developed countries led most commodity prices to deteriorate by the end of 2011. As a result, many investors adjusted their positions, leading revenue to decline. While stabilizing financial markets and lower trading volumes have hindered industry growth in recent years, revenue started to recover along with commodity prices. Over the five years to 2022, the Commodity Dealing and Brokerage industry is forecast to grow more robustly...read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 12-17
-0.2%
Forecast Growth 17-22
Profit
Employment
19,010
Businesses
5,097
What Our Customers Say

Industry Threats & Opportunities

  • Use of commodities has increased due to strong returns generated by speculators
  • The continued shift toward more scalable electronic trading systems prevented expansion in employment
  • A threat of inflation may cause more people to invest in commodities to hedge against it
  • Industry Report - Industry SWOT Analysis Chapter

    The Commodity Dealing and Brokerage industry is in the mature stage of its life cycle, characterized by consolidation in response to increasing regulation and declining profitability. Over the 10 years to 2022, industry value added (IVA), a measure of the industry's contribution to the overall economy, is expected to fall at an annualized rate of 2.9%, while GDP is expected to grow at an annualized rate of 2.1% during this time period. This is the result of increasing regulation, which has weighed on industry profitability, prompting consolidation among existing operators and deterring new entrants.Traditionally used as a hedge against price volatility and inflation, commodities are now seen as a distinct asset class and valuable portfolio diversification tool. Inv...purchase to read more.

    Additional Insights for the Commodity Dealing and Brokerage Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commodity Dealing and Brokerage Industry are

  • Having a good technical knowledge of the product
  • Ability to effectively manage risk
  • Must have license
  • IBISWorld analysts also discuss how external factors such as World GDP and S&P 500 in the Commodity Dealing and Brokerage industry impact industry performance..

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    What is the Commodity Dealing and Brokerage Industry?

    This industry includes operators and individuals who trade commodity derivatives. Commodity derivatives, such as futures, forwards, swaps and options, are financial securities that offer returns based on the return of an underlying commodity, such as agricultural products, energy resources and foreign currency. Brokers execute buyers’ orders by arranging transactions on a commission or transaction-fee basis, while dealers buy and sell derivatives on their own accounts for profit.

    Industry Products
  • Exchange-traded futures contracts
  • Exchange-traded options contracts
  • Trading derivatives contracts on own account
  • Other OTC-traded derivatives contracts
  • OTC-traded options contracts
  • Trading currency and other commodity contracts on own account
  • Investment management
  • Industry Activities
  • Commodity contracts dealing
  • Commodity contracts options dealing
  • Futures commodity contracts dealing
  • Foreign currency exchange dealing
  • Commodity contracts brokerage
  • Commodity contracts options brokerage
  • Futures commodity contracts brokerage
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World GDP
  • S&P 500
  • Agricultural price index
  • Trade-weighted index
  • World price of crude oil
  • Regulation for the Commodity Dealing and Brokerage industry

  • Current Performance
  • Large decline in oil prices negatively impacts revenue
  • Increasing regulation leads to consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulation increases industry viability
  • Commodities truly an asset class?
  • Table: Commodity Dealing and Brokerage Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commodity Dealing and Brokerage Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Mining
  • Utilities

  • Key Selling Industries
  • Stock & Commodity Exchanges

  • Products & Services
  • Exchange-traded futures contracts
  • Exchange-traded options contracts
  • Trading derivatives contracts on own account
  • Other
  • Trading currency and other commodity contracts on own account
  • Other OTC-traded derivatives contracts
  • OTC-traded options contracts
  • Investment management
  • Chart: Commodity Dealing and Brokerage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Proprietary trading firms
  • Member firms of CME
  • Nonmember firms (pensions, mutual funds, insurance companies)
  • Hedge funds
  • Chart: Major Market Segmentation for the Commodity Dealing and Brokerage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Clearing, execution and exchange fees
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Commodity Dealing and Brokerage

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commodity Dealing and Brokerage Industry

  • Industry Globalization
    Bank of America Corporation The Goldman Sachs Group Inc.Morgan StanleyJPMorgan Chase & Co.
  • Table: Bank of America Corporation - financial performance
  • Table: The Goldman Sachs Group Inc. - financial performance
  • Table: Morgan Stanley - financial performance
  • Table: JPMorgan Chase & Co. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commodity Dealing and Brokerage Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commodity Dealing and Brokerage Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • MSCI World Index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Assets Under Management (Aum)
  • The value of financial assets managed by a portfolio manager or financial institution on behalf of investors.
  • Commodities Contracts
  • Agreements to buy a predetermined good, such as steel, corn, wheat, oil and gold, at a specific price and date in the future.
  • Exchange-Traded Funds (Etfs)
  • An investment fund that tracks multiple securities that is traded on an exchange, like an individual stock.
  • Financial Assets
  • Nonphysical assets such as shares, bonds, notes and bank balances.
  • Over-The-Counter (Otc)
  • A security traded in some context other than on a formal exchange, such as derivatives, which can be traded through a dealer network.
  • Why buy this report?

    IBISWorld’s Commodity Dealing and Brokerage Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Commodity Dealing and Brokerage industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commodity Dealing and Brokerage:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commodity Dealing and Brokerage market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commodity Dealing and Brokerage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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