Agricultural Product Derivatives - Georgia

Georgia

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$4.21bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.56% resulting in a projected total amount of US$5.52bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.02 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 129.60k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Georgia is experiencing a shift in dynamics that is shaping the landscape of financial trading in the region.

Customer preferences: Traders in Georgia are increasingly showing interest in agricultural product derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of these derivatives lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical commodity.

Trends in the market: One notable trend in the Georgian Agricultural Product Derivatives market is the growing demand for derivatives linked to staple crops such as wheat and corn. This trend is driven by the country's strong agricultural sector and the need for risk management tools among farmers and agribusinesses. Additionally, there is a rising interest in exotic derivatives that offer unique payoffs based on specific market conditions.

Local special circumstances: Georgia's unique position as a major agricultural producer in the region plays a significant role in shaping the Agricultural Product Derivatives market. The country's diverse climate and fertile soil make it an ideal location for cultivating a wide range of crops, providing a solid foundation for derivative instruments linked to agricultural commodities. Moreover, the government's efforts to modernize the agricultural sector and attract foreign investment are creating a favorable environment for derivative trading activities.

Underlying macroeconomic factors: The stability of Georgia's economy, coupled with its strategic location at the crossroads of Europe and Asia, is attracting investors to the Agricultural Product Derivatives market. As the country continues to strengthen its trade relations with neighboring countries and improve its infrastructure, the demand for derivative products is expected to rise further. Additionally, favorable government policies and regulatory frameworks are enhancing market transparency and boosting investor confidence in agricultural product derivatives.

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.