Agricultural Product Derivatives - Hungary

Hungary

The nominal value in the Agricultural Product Derivatives market is projected to reach US$20.66bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 7.08% resulting in a projected total amount of US$29.09bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.10 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 235.80k by 2029.

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Analyst Opinion

Hungary, known for its rich agricultural heritage, has seen a notable development in the Agricultural Product Derivatives market.

Customer preferences: In Hungary, customers have shown a growing interest in agricultural product derivatives as a way to hedge against price volatility and manage risks associated with agricultural commodities. This trend is in line with global market behavior, where investors seek diversification and exposure to different asset classes.

Trends in the market: One of the key trends in the Hungarian Agricultural Product Derivatives market is the increasing participation of institutional investors, including pension funds and asset management companies. This influx of institutional money has brought liquidity to the market and has contributed to the overall growth and sophistication of agricultural derivatives trading in the country.

Local special circumstances: Hungary's geographical location and climate conditions play a significant role in shaping the Agricultural Product Derivatives market. The country's reliance on agriculture as a key economic sector has created a natural demand for agricultural derivatives among local producers and traders. Additionally, government policies and subsidies aimed at supporting the agricultural industry have further fueled the growth of the derivatives market in Hungary.

Underlying macroeconomic factors: The stability of Hungary's economy and its integration into the European Union have provided a favorable environment for the development of the Agricultural Product Derivatives market. As the country continues to attract foreign investments and improve its infrastructure, the agricultural sector is expected to expand, driving further growth in the derivatives market. Additionally, macroeconomic indicators such as inflation rates and interest rates play a crucial role in shaping investor sentiment and influencing trading activities in the agricultural derivatives market.

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.