Agricultural Product Derivatives - Ghana

Ghana

The nominal value in the Agricultural Product Derivatives market is projected to reach US$14.38bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.02% resulting in a projected total amount of US$18.37bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.15 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 146.70k by 2029.

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Analyst Opinion

The Agricultural Product Derivatives market in Ghana is experiencing a notable shift in recent years, driven by various factors shaping the market dynamics.

Customer preferences: Customers in Ghana are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical assets.

Trends in the market: One of the key trends in the Ghanaian Agricultural Product Derivatives market is the growing interest from institutional investors. As more institutional players enter the market, trading volumes are seeing a steady increase. Additionally, there is a rise in the popularity of derivative products based on staple crops like cocoa and maize, reflecting the importance of these commodities in the Ghanaian economy.

Local special circumstances: Ghana's agricultural sector plays a crucial role in the country's economy, with a significant portion of the population engaged in farming activities. This reliance on agriculture makes Agricultural Product Derivatives particularly relevant in Ghana, as they provide farmers and other market participants with a means to manage price risks and improve their financial stability.

Underlying macroeconomic factors: The stability of Ghana's economy and the government's efforts to promote agricultural development are contributing to the growth of the Agricultural Product Derivatives market. Favorable policies and initiatives aimed at boosting agricultural productivity are creating a conducive environment for market participants to engage in derivative trading activities. Additionally, the increasing integration of Ghana into the global financial markets is opening up new opportunities for investors looking to access Agricultural Product Derivatives.

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.