Agricultural Product Derivatives - Guatemala

Guatemala

The nominal value in the Agricultural Product Derivatives market is projected to reach US$20.35bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.24% resulting in a projected total amount of US$26.27bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.19 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 100.70k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Guatemala has seen a steady growth in the Agricultural Product Derivatives market in recent years.

Customer preferences: Investors in Guatemala are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against volatility in the market. They are attracted to the potential for high returns and the opportunity to speculate on the future prices of agricultural products without having to physically own them.

Trends in the market: One notable trend in the Guatemalan Agricultural Product Derivatives market is the growing interest in coffee derivatives. Guatemala is known for its high-quality coffee beans, and investors are capitalizing on this by trading coffee futures and options. This trend is fueled by global demand for specialty coffee and the country's reputation as a top coffee producer.

Local special circumstances: Given Guatemala's heavy reliance on agriculture as a key economic driver, the Agricultural Product Derivatives market plays a crucial role in managing risks associated with fluctuating commodity prices. Farmers and agribusinesses use derivatives to lock in prices for their produce, ensuring a level of certainty in an otherwise unpredictable market. This practice helps stabilize the agricultural sector and supports overall economic growth in the country.

Underlying macroeconomic factors: The growth of the Agricultural Product Derivatives market in Guatemala is also influenced by broader macroeconomic factors such as inflation rates, interest rates, and government policies. As the country continues to focus on economic development and attract foreign investment, the derivatives market provides a valuable tool for both local and international investors to participate in the agricultural sector without direct ownership of physical assets.

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.