Agricultural Product Derivatives - EAEU

EAEU

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$451.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.54% resulting in a projected total amount of US$487.40bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.32 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 1.46m by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Investors in the EAEU region are increasingly looking for alternative investment opportunities to diversify their portfolios and hedge against market volatility. This has led to a growing interest in Agricultural Product Derivatives, which offer unique risk management strategies and the potential for high returns.

Trends in the market: One prominent trend in the EAEU Agricultural Product Derivatives market is the rising demand for commodity futures contracts. Investors are attracted to the transparency and liquidity of these financial instruments, allowing them to speculate on the future price movements of agricultural products without owning the physical assets. Additionally, there is a growing trend towards trading options on agricultural futures, providing investors with more flexibility in their trading strategies.

Local special circumstances: The EAEU region is home to a diverse agricultural sector, with countries like Russia and Kazakhstan being major producers of grains, oilseeds, and livestock. This abundance of agricultural commodities creates a favorable environment for the development of Agricultural Product Derivatives markets, as investors have access to a wide range of underlying assets to trade.

Underlying macroeconomic factors: The Agricultural Product Derivatives market in the EAEU is also influenced by macroeconomic factors such as government policies, trade agreements, and currency fluctuations. For instance, trade agreements within the EAEU can impact the supply and demand dynamics of agricultural commodities, leading to price fluctuations that present trading opportunities for investors in the derivatives market. Additionally, government policies aimed at supporting the agricultural sector can have ripple effects on derivative prices, as investors assess the potential impact on supply and demand fundamentals.

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.