Agricultural Product Derivatives - Colombia

Colombia

The nominal value in the Agricultural Product Derivatives market is projected to reach US$77.42bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.04% resulting in a projected total amount of US$99.02bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.27 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 305.50k by 2029.

Market

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Analyst Opinion

The Agricultural Product Derivatives market in Colombia is experiencing a notable shift in recent times.

Customer preferences: Colombian investors are increasingly showing interest in agricultural product derivatives as a way to diversify their investment portfolios and hedge against market volatility. They are drawn to the potential for high returns that these financial instruments offer compared to traditional investment options.

Trends in the market: One of the key trends in the Colombian Agricultural Product Derivatives market is the growing popularity of coffee derivatives. Colombia is renowned for its high-quality coffee production, making coffee derivatives an attractive investment choice for both domestic and international investors. Additionally, there is a rising demand for derivatives linked to other agricultural products such as flowers and bananas, reflecting the country's diverse agricultural sector.

Local special circumstances: Colombia's geographical location and climate conditions play a significant role in shaping the Agricultural Product Derivatives market. The country's fertile land and varied topography allow for the cultivation of a wide range of agricultural products, providing ample opportunities for derivative products linked to these commodities. Moreover, the government's efforts to promote agricultural exports have further fueled the demand for agricultural product derivatives in the country.

Underlying macroeconomic factors: The stability of Colombia's economy and favorable government policies are contributing to the growth of the Agricultural Product Derivatives market. With a growing middle class and increasing disposable income, there is a greater appetite for investment opportunities, including agricultural product derivatives. Additionally, the country's strong ties to international markets and trade agreements have opened up avenues for investors to participate in global agricultural markets through derivatives trading.

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.