Agricultural Product Derivatives - Bangladesh

Bangladesh

The nominal value in the Agricultural Product Derivatives market is projected to reach US$9.31bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.31% resulting in a projected total amount of US$12.06bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.03 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 372.50k by 2029.

Market

Region

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Currency

Analyst Opinion

Bangladesh, known for its vibrant agricultural sector, is experiencing a growing interest in Agricultural Product Derivatives.

Customer preferences: Farmers and investors in Bangladesh are increasingly turning to Agricultural Product Derivatives as a way to manage risks associated with price fluctuations in the agricultural market. These financial instruments provide a means for stakeholders to hedge against potential losses and secure their investments.

Trends in the market: One notable trend in the Agricultural Product Derivatives market in Bangladesh is the rising demand for derivatives linked to key agricultural commodities such as rice, jute, and tea. As these commodities play a significant role in the country's economy, market participants are keen on utilizing derivatives to protect themselves from market uncertainties.

Local special circumstances: Bangladesh's vulnerability to natural disasters like floods and cyclones can have a significant impact on agricultural production. In such a volatile environment, Agricultural Product Derivatives offer a valuable tool for stakeholders to mitigate risks and ensure stability in their operations. Additionally, the government's efforts to modernize the agricultural sector have also contributed to the increasing adoption of derivatives in the market.

Underlying macroeconomic factors: The overall economic growth in Bangladesh, coupled with increasing foreign direct investment in the agricultural sector, has created a conducive environment for the development of the Agricultural Product Derivatives market. As the country continues to focus on enhancing agricultural productivity and efficiency, the demand for derivatives is expected to further rise in the coming years.

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.