Agricultural Product Derivatives - Benelux

Benelux

The nominal value in the Agricultural Product Derivatives market is projected to reach US$361.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.24% resulting in a projected total amount of US$466.50bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.32 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 1.18m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the dynamic landscape of financial markets in Benelux, the Agricultural Product Derivatives market is experiencing notable trends and developments.

Customer preferences: Investors in Benelux are showing a growing interest in Agricultural Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal lies in the potential for significant returns and the opportunity to speculate on price movements without owning the physical commodities.

Trends in the market: One prominent trend in the Agricultural Product Derivatives market in Benelux is the increasing adoption of technology and algorithmic trading. This trend is driven by the desire for more efficient trading strategies and the need to stay competitive in a rapidly evolving market environment. Additionally, there is a noticeable shift towards sustainable investing, with a focus on environmentally friendly agricultural practices and products.

Local special circumstances: Benelux countries have a strong tradition of agricultural innovation and sustainability, which is reflected in the Agricultural Product Derivatives market. This emphasis on sustainability is influencing the types of derivatives products being offered, with an increasing number of ESG (Environmental, Social, and Governance) focused instruments gaining traction among investors. Moreover, the region's strategic location and well-developed infrastructure make it a key player in the European agricultural market, further boosting the demand for Agricultural Product Derivatives.

Underlying macroeconomic factors: The Agricultural Product Derivatives market in Benelux is also influenced by broader macroeconomic factors such as global trade dynamics, government policies, and commodity prices. For instance, changes in trade agreements or agricultural subsidies can have a significant impact on derivative prices and market sentiment. Additionally, fluctuations in currency exchange rates and interest rates play a crucial role in shaping investor behavior and market trends in the region.

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.