Agricultural Product Derivatives - Cyprus

Cyprus

The nominal value in the Agricultural Product Derivatives market is projected to reach US$6.63bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -2.64% resulting in a projected total amount of US$5.80bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.06 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 128.90k by 2029.

Market

Region

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Currency

Analyst Opinion

Amidst the Mediterranean Sea, Cyprus is not only known for its stunning beaches and rich history but also for its evolving Agricultural Product Derivatives market. Customer preferences in Cyprus are shifting towards more diversified investment options, including Agricultural Product Derivatives, as investors seek alternative ways to hedge risks and maximize returns in their portfolios.

Trends in the market indicate a growing interest in Agricultural Product Derivatives in Cyprus, driven by the need for risk management tools in the agricultural sector. As the country continues to modernize its agricultural practices and increase production efficiency, the demand for derivatives to manage price fluctuations and mitigate risks associated with crop yields is on the rise. Local special circumstances, such as the country's reliance on agriculture as a significant economic sector, play a crucial role in shaping the Agricultural Product Derivatives market in Cyprus.

With a strong focus on export-oriented agriculture, farmers and agribusinesses are increasingly turning to derivatives to protect themselves against market volatility and secure their revenues. Underlying macroeconomic factors, like global commodity prices and trade agreements, also influence the Agricultural Product Derivatives market in Cyprus. As the country navigates the complexities of international trade and market dynamics, the use of derivatives provides a strategic advantage for market participants looking to safeguard their interests and optimize their financial performance in the agricultural sector.

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.