Agricultural Product Derivatives - BRICS

BRICS

The nominal value in the Agricultural Product Derivatives market is projected to reach US$12.76tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.90% resulting in a projected total amount of US$14.02tn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.01 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 2.00bn by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in BRICS countries is experiencing dynamic growth and evolution.

Customer preferences: Investors in BRICS countries are increasingly turning to agricultural product derivatives as a way to diversify their portfolios and hedge against market volatility. The potential for high returns and the ability to speculate on price movements are driving interest in these financial instruments.

Trends in the market: In Brazil, there is a growing demand for derivatives linked to soybeans and coffee as the country solidifies its position as a major exporter of these commodities. Russia is witnessing a surge in trading of wheat and sugar derivatives due to its significant agricultural production. India's market is seeing a rise in trading of rice and cotton derivatives, reflecting the country's dominance in these crops. China, as a key player in global agricultural markets, is experiencing increased activity in derivatives linked to corn and pork.

Local special circumstances: Each BRICS country has its own unique set of circumstances shaping the agricultural product derivatives market. Brazil benefits from a favorable climate for crop cultivation, leading to a strong position in soybean and coffee derivatives. Russia's vast arable land allows for extensive wheat production, driving the demand for wheat derivatives. India's large population and agricultural sector make rice and cotton derivatives popular choices for investors. China's massive consumption of corn and pork creates a robust market for derivatives linked to these commodities.

Underlying macroeconomic factors: Economic growth, government policies, and global trade dynamics play a significant role in shaping the agricultural product derivatives market in BRICS countries. Factors such as currency fluctuations, trade agreements, and weather patterns can impact the prices of agricultural commodities, influencing the demand for derivatives as a risk management tool. As these countries continue to strengthen their positions in global agricultural markets, the importance of agricultural product derivatives is likely to grow.

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.