Commodity trading in East Asia has been heralded as an almost unstoppable juggernaut. However, in 2011 commodity futures and options markets in the region look set to suffer their first year-on-year decline.
According to figures from FOintelligence,
in 2010, 1.4bn commodity contracts were traded in on exchanges
in East Asia. However, in the year to the end of July, that
figure fell to just 334.8m contracts, a near certain indication
that volumes will fall well short of matching
2010’s levels of activity and that 2011 will mark
the first ever annual fall in volumes in East
Asia’s roaring derivatives markets.
Delve into the volumes and you see why
Asia’s commodity markets are set to fall in 2011.
Like in 2010, Asia’s big two commodity markets,
India and China dominated trading, supplemented by several
markets, particularly the emerging markets of Thailand, and
Taiwan, and older, more established, markets like Singapore
So what’s driving this
decline? Well when the biggest market suffers, the region
suffers. China’s market has slowed, trading
431.87m commodity derivatives in 2011 to date but on track to
fall well short of the 1.2bn contracts, which were traded in
2010. Few would have predicted such a slowdown even a year
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