Agricultural Product Derivatives - Benin

Benin

The nominal value in the Agricultural Product Derivatives market is projected to reach US$2.81bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.20% resulting in a projected total amount of US$3.62bn 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 113.00k by 2029.

Market

Region

Region comparison

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Analyst Opinion

The Agricultural Product Derivatives market in Benin is experiencing a notable shift in recent times.

Customer preferences: Customers in Benin are showing an increasing interest in agricultural product derivatives as a way to diversify their investment portfolios and hedge against market volatility. This growing trend is in line with global patterns where investors are turning to alternative assets for higher returns and risk management.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in Benin is the rising demand for derivatives linked to local cash crops such as cotton and cocoa. As these commodities play a significant role in the country's economy, investors are keen on leveraging derivatives to capitalize on price fluctuations and market dynamics. Additionally, there is a noticeable uptick in trading activity in futures and options contracts related to staple food crops like maize and rice.

Local special circumstances: Benin's agricultural sector is heavily reliant on smallholder farmers, which presents unique opportunities and challenges in the derivatives market. The government's initiatives to support small-scale farmers and improve agricultural productivity are influencing the dynamics of agricultural product derivatives. Moreover, the country's geographical location and trade partnerships within the region are shaping the demand for specific types of derivatives linked to regional agricultural commodities.

Underlying macroeconomic factors: The macroeconomic landscape in Benin, characterized by stable economic growth and a focus on agricultural development, is fostering a conducive environment for the growth of the Agricultural Product Derivatives market. Factors such as government policies to promote agricultural exports, infrastructure investments, and technological advancements in the sector are driving the adoption of derivatives as financial instruments for risk management and investment purposes. Additionally, the increasing participation of institutional investors in the derivatives market is contributing to its overall growth and liquidity.

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.