Agricultural Product Derivatives - Iran

Iran

The nominal value in the Agricultural Product Derivatives market is projected to reach US$1.63bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.40% resulting in a projected total amount of US$2.12bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.00 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 5.12m by 2029.

Market

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Analyst Opinion

Iran's Agricultural Product Derivatives market is experiencing a notable shift in recent years.

Customer preferences: Customers in Iran are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. This trend mirrors the global pattern where investors are seeking alternative investment options beyond traditional stocks and bonds.

Trends in the market: The Agricultural Product Derivatives market in Iran is witnessing a surge in trading activities, driven by growing awareness among investors about the potential benefits of these financial instruments. As the market matures, more sophisticated trading strategies and products are being introduced to cater to the evolving needs of investors. This trend is in line with the broader global trend of increasing participation in derivative markets.

Local special circumstances: Iran's economy, with its heavy reliance on agriculture, plays a significant role in shaping the Agricultural Product Derivatives market. Fluctuations in agricultural commodity prices directly impact the market dynamics, leading to a higher demand for derivative products to manage price risks. Additionally, government policies and regulations regarding agricultural production and trade also influence the development of the derivatives market in the country.

Underlying macroeconomic factors: The macroeconomic landscape in Iran, including factors such as inflation rates, interest rates, and overall economic stability, plays a crucial role in driving the growth of the Agricultural Product Derivatives market. Investors closely monitor these macroeconomic indicators to make informed decisions about their derivative investments. As the economy continues to evolve, the market for Agricultural Product Derivatives is expected to expand further, offering new opportunities for investors to participate in this dynamic 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.