Agricultural Product Derivatives - Brunei Darussalam

Brunei Darussalam

The nominal value in the Agricultural Product Derivatives market is projected to reach US$731.60m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.80% resulting in a projected total amount of US$924.80m 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 51.77k by 2029.

Market

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Analyst Opinion

Amidst the lush rainforests and diverse wildlife of Brunei Darussalam, the Agricultural Product Derivatives market is experiencing a gradual but steady development. Customer preferences in Brunei Darussalam for Agricultural Product Derivatives are influenced by a growing interest in diversifying investment portfolios and hedging against price fluctuations in the global market.

Investors in the country are increasingly looking for opportunities to trade in these derivatives to manage risk and potentially gain from price movements in agricultural products. Trends in the Agricultural Product Derivatives market in Brunei Darussalam are shaped by the global demand for agricultural commodities and the impact of climate change on crop yields. As the world's population continues to grow, there is a constant need for agricultural products, leading to price volatility that investors in Brunei Darussalam are keen to capitalize on through derivatives trading.

Moreover, the effects of climate change on agricultural production worldwide are driving the need for risk management tools, further boosting the demand for these derivatives in the country. Local special circumstances in Brunei Darussalam, such as its small but stable economy and strategic location in Southeast Asia, play a role in attracting investors to the Agricultural Product Derivatives market. The country's strong regulatory framework and political stability provide a secure environment for derivative trading, making it an appealing destination for both local and foreign investors looking to participate in this market.

Underlying macroeconomic factors, including global trade relationships and technological advancements in agriculture, also contribute to the development of the Agricultural Product Derivatives market in Brunei Darussalam. The country's close ties with regional and international trading partners enable investors to access a wide range of agricultural products for derivatives trading, while advancements in agricultural technology enhance productivity and create new opportunities for investment in the sector.

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.