Agricultural Product Derivatives - Central Asia

Central Asia

The nominal value in the Agricultural Product Derivatives market is projected to reach US$16.56bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.09% resulting in a projected total amount of US$21.23bn 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 0.45m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in Central Asia is experiencing a shift in customer preferences towards more diverse investment options and risk management strategies.

Customer preferences: Investors in Central Asia are increasingly looking for ways to diversify their portfolios and hedge against market volatility. This has led to a growing interest in agricultural product derivatives, offering a unique opportunity to speculate on price movements without directly owning the physical commodities.

Trends in the market: One of the prominent trends in the Central Asian Agricultural Product Derivatives market is the adoption of advanced trading technologies and platforms. This has made it easier for investors to access and trade derivatives, leading to a surge in trading volumes. Additionally, the market is witnessing an increase in the variety of derivative products available, catering to different risk appetites and investment objectives.

Local special circumstances: Central Asia's agricultural sector plays a significant role in the region's economy, making agricultural product derivatives a key area of interest for investors. The region's unique climatic conditions and agricultural practices can impact the prices of underlying commodities, creating opportunities for derivative traders to capitalize on price fluctuations.

Underlying macroeconomic factors: The development of the Agricultural Product Derivatives market in Central Asia is also influenced by broader macroeconomic factors. Economic growth, inflation rates, and government policies can all have an impact on the demand for derivatives as investors seek to manage their exposure to various risks. Additionally, geopolitical developments and trade agreements can affect the prices of agricultural commodities, driving activity in the derivatives market.

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.