Agricultural Product Derivatives - Jamaica

Jamaica

The nominal value in the Agricultural Product Derivatives market is projected to reach US$3.84bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.04% resulting in a projected total amount of US$4.91bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.02 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 93.19k by 2029.

Market

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Analyst Opinion

The Agricultural Product Derivatives market in Jamaica has been experiencing notable growth and evolution in recent years. Customer preferences have been shifting towards more diverse investment options, including agricultural product derivatives, as investors seek to diversify their portfolios and hedge against market volatility.

Trends in the market show an increasing demand for agricultural product derivatives in Jamaica, driven by a growing interest from both institutional and retail investors looking to capitalize on the potential returns offered by these financial instruments. Local special circumstances, such as Jamaica's strong agricultural sector and the government's efforts to promote investment in the derivatives market, have contributed to the development and expansion of agricultural product derivatives trading in the country. Underlying macroeconomic factors, such as global commodity prices, foreign exchange rates, and domestic agricultural production levels, play a significant role in shaping the Agricultural Product Derivatives market in Jamaica.

These factors influence investor sentiment and market dynamics, driving the demand for agricultural product derivatives as a means of managing risk and maximizing returns in a changing economic environment.

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.