Agricultural Product Derivatives - Azerbaijan

The nominal value in the Agricultural Product Derivatives market is projected to reach US$411.70m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.57% resulting in a projected total amount of US$539.90m 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 United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 150.60k by 2029.

Definition:

The Agricultural Product Derivatives market refers to derivatives of agricultural products such as coffee or rice. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of rice, an investor could own a derivative of rice). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular Agricultural product derivatives are coffee, rice, or barley.

Agricultural Product Derivatives, e.g. cotton, wheat, rice

Physical agricultural products

The Agricultural Product Derivatives market in Azerbaijan has been experiencing significant growth and development in recent years. Customer preferences in Azerbaijan are shifting towards more diversified investment opportunities, including Agricultural Product Derivatives, as investors seek to hedge risks and explore new avenues for financial growth.

Trends in the market indicate a growing interest from both retail and institutional investors in Agricultural Product Derivatives, driven by the desire to capitalize on price movements and enhance portfolio performance in a volatile market environment. Local special circumstances, such as the government's efforts to promote agricultural sector development and the increasing importance of derivatives markets in the country's financial landscape, are contributing to the expansion of Agricultural Product Derivatives trading in Azerbaijan. Underlying macroeconomic factors, such as inflation rates, interest rates, and overall economic stability, play a crucial role in shaping the demand for Agricultural Product Derivatives in Azerbaijan, influencing investor sentiment and market dynamics.

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.

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