Agricultural Product Derivatives - Australia & Oceania

Australia & Oceania

The nominal value in the Agricultural Product Derivatives market is projected to reach US$11.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.53% resulting in a projected total amount of US$12.62bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.01 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 0.78m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Australia & Oceania is witnessing a growing interest in Agricultural Product Derivatives, with unique trends shaping the market in this region.

Customer preferences: Investors in Australia & Oceania are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against volatility in traditional financial markets. The appeal of these derivatives lies in their potential for high returns and the opportunity to speculate on price movements in agricultural commodities without owning the physical assets.

Trends in the market: One significant trend in the Australian & Oceanian Agricultural Product Derivatives market is the growing popularity of futures and options contracts linked to key agricultural commodities such as wheat, barley, and wool. These derivatives provide market participants with a way to manage the risks associated with price fluctuations in these commodities, which are vital to the region's economy.

Local special circumstances: Australia & Oceania's unique agricultural landscape, characterized by a heavy reliance on exports of commodities like beef, dairy, and sugar, plays a crucial role in driving the demand for Agricultural Product Derivatives. The region's exposure to factors such as weather conditions, global demand, and currency fluctuations makes these derivatives an essential tool for producers, traders, and investors looking to mitigate risk.

Underlying macroeconomic factors: The stability of Australia's economy, coupled with its strong agricultural sector, contributes to the overall growth of the Agricultural Product Derivatives market in the region. Additionally, increasing global demand for agricultural products and the impact of climate change on crop yields are factors that further drive the use of derivatives to manage price risks effectively.

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.