Agricultural Product Derivatives - Algeria

Algeria

The nominal value in the Agricultural Product Derivatives market is projected to reach US$419.60m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 13.10% resulting in a projected total amount of US$776.40m by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$12,320.00bn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 229.30k by 2029.

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Analyst Opinion

Algeria, a country known for its rich agricultural heritage, is experiencing significant developments in the Agricultural Product Derivatives market.

Customer preferences: Customers in Algeria are showing a growing interest in Agricultural Product Derivatives as a way to hedge against price volatility in the global commodities market. With a focus on risk management and potential for higher returns, investors are increasingly turning to these financial instruments to diversify their portfolios.

Trends in the market: One notable trend in the Algerian Agricultural Product Derivatives market is the increasing demand for derivatives linked to staple crops such as wheat, barley, and citrus fruits. This trend is driven by the country's reliance on agriculture as a key economic sector, making it crucial for market participants to mitigate risks associated with fluctuations in crop prices.

Local special circumstances: Algeria's unique position as a net importer of agricultural products plays a significant role in shaping the dynamics of the Agricultural Product Derivatives market. The country's vulnerability to price volatility in the global market has prompted both farmers and investors to seek out derivative instruments as a means of stabilizing income and protecting against adverse price movements.

Underlying macroeconomic factors: The Algerian economy's heavy dependence on oil revenues has led to fluctuations in government spending, which in turn impact the agricultural sector. As a result, market participants are increasingly turning to Agricultural Product Derivatives to manage risks associated with macroeconomic uncertainties and ensure a more stable financial outlook. Additionally, regulatory reforms aimed at promoting transparency and efficiency in the derivatives market are further driving growth and innovation in this sector.

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.