Agricultural Product Derivatives - Bulgaria

Bulgaria

The nominal value in the Agricultural Product Derivatives market is projected to reach US$25.93bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -4.44% resulting in a projected total amount of US$20.66bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.16 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 176.70k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in Bulgaria is experiencing a shift in customer preferences towards more diversified investment options.

Customer preferences: Investors in Bulgaria are increasingly looking for alternative investment opportunities beyond traditional financial instruments. This shift is driven by a growing interest in agricultural product derivatives, which offer a way to diversify portfolios and potentially generate higher returns.

Trends in the market: The Agricultural Product Derivatives market in Bulgaria is witnessing a rise in trading volumes and market participation. This trend can be attributed to the increasing awareness and education about derivatives trading among investors in the country. Additionally, the availability of online trading platforms has made it easier for individuals to access and trade agricultural product derivatives.

Local special circumstances: Bulgaria's strong agricultural sector plays a significant role in driving the demand for agricultural product derivatives. The country is known for its production of wheat, corn, and sunflower seeds, among other commodities. This local specialization creates a natural interest among investors to hedge their risks or speculate on price movements through derivatives linked to these agricultural products.

Underlying macroeconomic factors: The macroeconomic stability in Bulgaria, coupled with favorable government policies towards the financial markets, has created a conducive environment for the growth of the Agricultural Product Derivatives market. Additionally, the integration of Bulgaria into the European Union has opened up opportunities for investors to participate in a larger market and benefit from cross-border trading activities.

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.