Agricultural Product Derivatives - Brazil

Brazil

The nominal value in the Agricultural Product Derivatives market is projected to reach US$635.10bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.03% resulting in a projected total amount of US$668.50bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.22 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 3.08m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Brazil, known for its rich agricultural industry, has a dynamic Agricultural Product Derivatives market that is influenced by various factors.

Customer preferences: Customers in Brazil show a growing interest in Agricultural Product Derivatives as a way to hedge against price volatility in the commodity market. With the country being a major player in the global agricultural sector, market participants are increasingly using derivatives to manage risk and speculate on price movements.

Trends in the market: One notable trend in the Brazilian Agricultural Product Derivatives market is the increasing demand for derivatives linked to key commodities such as soybeans, coffee, sugar, and corn. As Brazil is a leading producer of these agricultural products, market participants are actively trading derivatives contracts to gain exposure to price fluctuations in these markets.

Local special circumstances: Brazil's unique climate conditions and geographical landscape play a significant role in shaping the Agricultural Product Derivatives market. Factors such as weather patterns, government policies, and infrastructure development impact the supply and demand dynamics of agricultural commodities, thereby influencing the derivatives market.

Underlying macroeconomic factors: The Brazilian economy, as a whole, plays a crucial role in driving the Agricultural Product Derivatives market. Macroeconomic indicators such as inflation rates, interest rates, and currency fluctuations can have a direct impact on commodity prices, which in turn affect the derivatives market. Additionally, political stability and trade agreements also play a vital role in shaping the market trends in Brazil.

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.