Agricultural Product Derivatives - CIS

The nominal value in the Agricultural Product Derivatives market is projected to reach US$455.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.58% resulting in a projected total amount of US$492.80bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.24 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 1.87m by 2029.

Market

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Region comparison

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Analyst Opinion

The Agricultural Product Derivatives market in CIS is experiencing a significant growth trajectory with a notable shift in customer preferences towards more diverse investment options.

Customer preferences: Investors in the CIS region are increasingly drawn to the Agricultural Product Derivatives market due to its potential for high returns and portfolio diversification. The market offers a range of derivative products that allow investors to hedge against price fluctuations and mitigate risks associated with traditional agricultural investments.

Trends in the market: One prominent trend in the CIS Agricultural Product Derivatives market is the growing interest in commodity futures and options. Investors are leveraging these financial instruments to speculate on the future price movements of agricultural products without directly owning the physical assets. This trend is fueled by the region's expanding agricultural sector and the need for risk management tools.

Local special circumstances: In the CIS region, the Agricultural Product Derivatives market is influenced by unique geopolitical factors and regulatory environments. Political stability and government policies play a crucial role in shaping market dynamics and investor sentiment. Additionally, the region's reliance on agricultural exports and fluctuating commodity prices contribute to the demand for derivative products as a means of managing price risks.

Underlying macroeconomic factors: The development of the Agricultural Product Derivatives market in the CIS region is closely tied to macroeconomic factors such as inflation rates, interest rates, and currency fluctuations. Economic stability and growth prospects impact investor confidence and participation in derivative markets. As the region continues to integrate into the global economy, the Agricultural Product Derivatives market is poised to expand further, driven by evolving macroeconomic conditions.

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.