Agricultural Product Derivatives - Honduras

Honduras

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$6.68bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.71% resulting in a projected total amount of US$8.41bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.14 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 40.48k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst a growing interest in agricultural product derivatives, Honduras is experiencing a notable evolution in its market trends. Customer preferences in Honduras are shifting towards more diverse investment options, reflecting a global trend where investors seek to diversify their portfolios with alternative assets.

This has led to an increased demand for agricultural product derivatives as a way to hedge against market volatility and potentially achieve higher returns. Trends in the market indicate a rising participation of institutional investors in agricultural product derivatives in Honduras. This trend aligns with the broader regional movement towards financialization of commodities markets, where institutional investors are increasingly looking at agricultural derivatives as a viable investment option.

Local special circumstances, such as the country's reliance on agriculture as a key economic sector, play a significant role in driving the development of the agricultural product derivatives market in Honduras. The agricultural sector's importance in the country's economy makes agricultural derivatives a crucial financial tool for stakeholders to manage risks associated with price fluctuations and ensure stability in the market. Underlying macroeconomic factors, including global trade dynamics and commodity price movements, also influence the agricultural product derivatives market in Honduras.

As a country highly dependent on agricultural exports, Honduras is susceptible to fluctuations in global commodity prices. This makes agricultural derivatives an attractive option for market participants to mitigate risks and capitalize on market opportunities in a volatile economic environment.

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.