Agricultural Product Derivatives - Eastern Asia

Eastern Asia

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$12.79tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.83% resulting in a projected total amount of US$14.01tn 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 United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 2.00bn by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

In Eastern Asia, the Agricultural Product Derivatives market is a dynamic and evolving sector driven by various factors.

Customer preferences: Customers in Eastern Asia are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of these derivatives lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical commodities.

Trends in the market: In Japan, there is a growing interest in Agricultural Product Derivatives, particularly among institutional investors looking to manage risk exposure. The market is witnessing a trend towards more sophisticated trading strategies and the adoption of advanced risk management tools.

Local special circumstances: South Korea stands out in the region for its active participation in the Agricultural Product Derivatives market. The country's well-developed financial infrastructure and strong regulatory framework have attracted both domestic and foreign investors. Additionally, the government's initiatives to promote derivatives trading have further boosted market activity.

Underlying macroeconomic factors: China, as a major player in the global agricultural market, significantly influences the Agricultural Product Derivatives market in Eastern Asia. Economic policies, trade agreements, and domestic production levels in China have a direct impact on derivative prices and market sentiment across the region. As the world's largest importer of soybeans and a key consumer of other agricultural products, developments in China have ripple effects on derivative markets in neighboring countries.

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.