Agricultural Product Derivatives - Americas

Americas

The nominal value in the Agricultural Product Derivatives market is projected to reach US$14.43tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.20% resulting in a projected total amount of US$15.32tn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.02 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 601.60m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in Americas has been witnessing significant growth and evolution in recent years.

Customer preferences: Investors in the Americas have shown a strong interest in agricultural product derivatives as a way to diversify their portfolios and hedge against market volatility. The derivatives market offers them the opportunity to speculate on price movements of agricultural commodities without owning the physical assets.

Trends in the market: In the United States, the largest agricultural product derivatives market in the region, there has been a growing demand for derivatives linked to key commodities such as corn, soybeans, and wheat. This trend is driven by factors such as changing weather patterns, global trade dynamics, and government policies impacting crop production and prices.

Local special circumstances: Brazil, a major player in the agricultural sector in the Americas, has been experiencing an increase in the trading of agricultural product derivatives. The country's vast arable land and diverse range of agricultural products make it an attractive market for investors looking to capitalize on price fluctuations in commodities like sugar, coffee, and soybeans.

Underlying macroeconomic factors: The overall growth of the Agricultural Product Derivatives market in the Americas can be attributed to various macroeconomic factors such as inflation rates, interest rates, and currency fluctuations. Investors often turn to agricultural derivatives as a way to protect their investments against these economic uncertainties and capitalize on potential opportunities in the market.

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.