Agricultural Product Derivatives - Chad

Chad

The nominal value in the Agricultural Product Derivatives market is projected to reach US$1.16bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.99% resulting in a projected total amount of US$1.48bn 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 104.00k by 2029.

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Analyst Opinion

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

Customer preferences: Investors in Chad are increasingly looking for alternative investment opportunities beyond traditional financial instruments. This shift is driven by a growing interest in diversifying portfolios and hedging against market volatility. As a result, there is a rising demand for agricultural product derivatives as a way to access commodity markets and potentially benefit from price movements.

Trends in the market: One of the noticeable trends in the Agricultural Product Derivatives market in Chad is the adoption of derivatives as a risk management tool by both individual and institutional investors. Derivatives offer a way to speculate on price movements without owning the underlying asset, providing flexibility and leverage for market participants. This trend is in line with global developments where derivative markets are expanding rapidly, offering new opportunities for investors.

Local special circumstances: Chad's economy heavily relies on agriculture, making agricultural product derivatives particularly relevant in the local market. The fluctuation in commodity prices can have a significant impact on the country's economy, making risk management through derivatives crucial for market participants. Additionally, the agricultural sector in Chad faces challenges such as weather uncertainties and infrastructural limitations, further emphasizing the need for risk mitigation strategies through derivatives.

Underlying macroeconomic factors: The development of the Agricultural Product Derivatives market in Chad is also influenced by broader macroeconomic factors. Economic stability, government policies, and global market trends play a significant role in shaping the demand for derivatives in the country. As Chad continues to integrate into the global economy, the awareness and utilization of agricultural product derivatives are expected to increase, providing investors with more opportunities to participate in the 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.