Agricultural Product Derivatives - Gambia

Gambia

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$30.49m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -3.37% resulting in a projected total amount of US$25.69m by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.00 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 31.54k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Gambia is showing interesting developments.

Customer preferences: Customers in Gambia are increasingly looking towards Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The potential for high returns in this market is attracting a growing number of investors seeking to capitalize on price movements in agricultural commodities.

Trends in the market: One notable trend in the Agricultural Product Derivatives market in Gambia is the increasing interest in derivatives linked to staple crops such as rice, maize, and peanuts. As these agricultural products play a crucial role in the country's economy and food security, there is a heightened focus on trading derivatives based on their price fluctuations. Additionally, the adoption of technology in trading platforms is making it easier for investors to participate in the market, further driving its growth.

Local special circumstances: Gambia's agricultural sector is heavily reliant on small-scale farming, which makes it susceptible to various risks such as weather fluctuations and market uncertainties. As a result, the use of Agricultural Product Derivatives is becoming more prevalent as a risk management tool for farmers and other market participants. The government's efforts to promote agricultural development and improve market efficiency are also contributing to the expansion of the derivatives market in the country.

Underlying macroeconomic factors: The stability of Gambia's economy and its reliance on agriculture as a primary source of income are key macroeconomic factors influencing the Agricultural Product Derivatives market. As the government continues to focus on agricultural growth and market liberalization, the demand for derivatives is expected to rise. Moreover, external factors such as global commodity prices and trade agreements play a significant role in shaping the dynamics of the market in Gambia.

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.