Agricultural Product Derivatives - Estonia

Estonia

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$8.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.25% resulting in a projected total amount of US$10.72bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.13 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 61.68k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Estonia, a country known for its rich agricultural history and commitment to sustainable farming practices, is experiencing a notable development in the Agricultural Product Derivatives market. Customer preferences in Estonia are shifting towards more diversified investment opportunities, including Agricultural Product Derivatives.

Investors are increasingly looking for ways to hedge risks and diversify their portfolios, and agricultural derivatives provide a unique avenue for this purpose. The appeal of these derivatives lies in their potential for high returns and the opportunity to speculate on price movements in the agricultural sector. Trends in the market indicate a growing interest in Agricultural Product Derivatives among both retail and institutional investors in Estonia.

The market is witnessing an influx of new participants seeking exposure to commodities such as wheat, corn, and soybeans through derivative instruments. This trend is fueled by the desire to capitalize on the volatility of agricultural markets and leverage trading opportunities. Local special circumstances, such as Estonia's strong agricultural sector and its integration into the global market, play a significant role in shaping the Agricultural Product Derivatives market in the country.

The country's reliance on agricultural exports and its exposure to international commodity prices make agricultural derivatives an attractive option for market participants looking to manage risk and capitalize on price movements. Underlying macroeconomic factors, including global supply and demand dynamics, geopolitical events, and weather patterns, also influence the Agricultural Product Derivatives market in Estonia. Fluctuations in commodity prices, trade policies, and environmental factors can create opportunities for investors trading agricultural derivatives.

As a result, market participants in Estonia closely monitor these macroeconomic factors to make informed decisions and navigate the volatility of the agricultural market.

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.