Agricultural Product Derivatives - El Salvador

El Salvador

The nominal value in the Agricultural Product Derivatives market is projected to reach US$6.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.48% resulting in a projected total amount of US$8.59bn 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 131.10k by 2029.

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Analyst Opinion

The Agricultural Product Derivatives market in El Salvador has been experiencing notable developments recently. Customer preferences in El Salvador are shifting towards more diversified investment options, with a growing interest in agricultural product derivatives as a way to hedge risks and diversify portfolios.

Trends in the market indicate a gradual increase in the trading volume of agricultural product derivatives, driven by the need for risk management among investors and the potential for significant returns in a volatile market environment. Local special circumstances, such as the country's reliance on agriculture as a key economic sector, play a significant role in driving the demand for agricultural product derivatives. This reliance creates a natural connection between investors and the performance of agricultural products, making derivatives an attractive investment option.

Underlying macroeconomic factors, including fluctuating commodity prices and global trade dynamics, also influence the Agricultural Product Derivatives market in El Salvador. Investors are closely monitoring these factors to make informed decisions and capitalize on market opportunities.

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.