Agricultural Product Derivatives - Belgium

Belgium

The nominal value in the Agricultural Product Derivatives market is projected to reach US$125.10bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.06% resulting in a projected total amount of US$160.10bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.31 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 458.40k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Belgium, known for its chocolate and waffles, also has a notable Agricultural Product Derivatives market.

Customer preferences: Investors in Belgium show a growing interest in Agricultural Product Derivatives as they seek to diversify their portfolios and hedge against market volatility. With a strong agricultural sector in the country, there is a natural inclination towards trading these derivatives.

Trends in the market: In Belgium, there is a noticeable trend towards increased trading of Agricultural Product Derivatives, driven by factors such as changing weather patterns affecting crop yields, global demand for agricultural products, and government policies influencing agricultural practices. These trends are shaping the market dynamics and leading to more sophisticated trading strategies.

Local special circumstances: Belgium's strategic location in Europe and its well-developed infrastructure make it a key player in the Agricultural Product Derivatives market. The country's strong ties with neighboring agricultural economies further enhance its position as a hub for trading these derivatives. Additionally, Belgium's focus on sustainability and innovation in agriculture is influencing the development of new derivative products tailored to meet the evolving needs of market participants.

Underlying macroeconomic factors: The stability of the Belgian economy, along with its openness to international trade, is providing a favorable environment for the growth of the Agricultural Product Derivatives market. Moreover, the country's robust regulatory framework and financial market infrastructure are instilling confidence among investors and facilitating the expansion of derivative trading activities.

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.