Agricultural Product Derivatives - Europe

Europe

The nominal value in the Agricultural Product Derivatives market is projected to reach US$4.70tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.53% resulting in a projected total amount of US$5.59tn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.36 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 13.41m by 2029.

Market

Region

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Analyst Opinion

The Agricultural Product Derivatives market in Europe is experiencing a significant shift in dynamics as customer preferences, trends, and local special circumstances shape its development.

Customer preferences: Customers in the European Agricultural Product Derivatives market are increasingly seeking diversified investment options to hedge against market volatility and inflation. They are looking for innovative financial instruments that offer exposure to various agricultural commodities without the need for physical ownership.

Trends in the market: One prominent trend in the European Agricultural Product Derivatives market is the growing interest in sustainable and ESG (Environmental, Social, and Governance) investing. Investors are showing a preference for derivatives linked to ethically sourced agricultural products, reflecting a broader global shift towards responsible investing practices.

Local special circumstances: In Europe, the Agricultural Product Derivatives market is influenced by the Common Agricultural Policy (CAP) of the European Union, which plays a crucial role in shaping agricultural production and trade policies. The regulatory framework and subsidies provided under the CAP impact the prices of agricultural commodities, thereby influencing the derivatives market.

Underlying macroeconomic factors: The development of the Agricultural Product Derivatives market in Europe is also influenced by broader macroeconomic factors such as interest rates, inflation, and currency fluctuations. Economic indicators and policy decisions by central banks can impact investor sentiment and drive demand for agricultural derivatives as part of a diversified investment portfolio.

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.