Agricultural Product Derivatives - Finland

Finland

The nominal value in the Agricultural Product Derivatives market is projected to reach US$65.54bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.92% resulting in a projected total amount of US$83.34bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.28 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 246.60k by 2029.

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Analyst Opinion

Over the past few years, the Agricultural Product Derivatives market in Finland has shown significant growth and development. Customer preferences in Finland for Agricultural Product Derivatives have been influenced by a growing interest in diversifying investment portfolios and hedging against market volatility.

Investors in Finland are increasingly looking for alternative investment opportunities beyond traditional financial instruments, and Agricultural Product Derivatives present a lucrative option due to their potential for high returns. Trends in the market indicate a rising demand for Agricultural Product Derivatives in Finland, driven by factors such as increasing awareness about risk management strategies among investors and the growing popularity of commodity trading. The market is witnessing a shift towards more sophisticated derivative products tailored to meet the specific needs of investors in the agricultural sector.

Local special circumstances, such as Finland's strong agricultural sector and its dependence on global commodity prices, play a crucial role in shaping the Agricultural Product Derivatives market in the country. The presence of a well-established agricultural industry provides a solid foundation for the development of derivative products linked to agricultural commodities, attracting both domestic and international investors. Underlying macroeconomic factors, including global market trends, geopolitical developments, and regulatory changes, also impact the Agricultural Product Derivatives market in Finland.

The country's stable economic environment and commitment to sustainable agricultural practices further contribute to the attractiveness of Agricultural Product Derivatives as an investment option for both institutional and retail investors in Finland.

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.