Agricultural Product Derivatives - Jordan

Jordan

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$311.60m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.72% resulting in a projected total amount of US$374.00m 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 United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 64.91k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst the arid landscapes of Jordan, the Agricultural Product Derivatives market is experiencing notable developments. Customer preferences in Jordan are increasingly leaning towards Agricultural Product Derivatives as a way to diversify investment portfolios and hedge against price volatility in the global market.

Investors and financial institutions are showing a growing interest in these derivatives due to their potential for high returns and risk management capabilities. Trends in the market indicate a rising demand for Agricultural Product Derivatives in Jordan, driven by the country's efforts to modernize its agricultural sector and enhance productivity. As the government implements policies to promote agricultural growth and sustainability, market participants are leveraging derivatives to capitalize on emerging opportunities and mitigate risks associated with fluctuating commodity prices.

Local special circumstances, such as Jordan's limited arable land and water resources, are prompting market players to explore alternative investment instruments like Agricultural Product Derivatives. By engaging in derivative trading, stakeholders in the agricultural sector can effectively manage price risks and optimize their financial performance in a challenging environment. Underlying macroeconomic factors, including global market trends and geopolitical dynamics, are also influencing the Agricultural Product Derivatives market in Jordan.

As the country navigates economic uncertainties and external pressures, derivatives offer a strategic tool for investors to navigate market volatility and achieve their financial objectives. By closely monitoring customer preferences, market trends, local special circumstances, and macroeconomic factors, stakeholders in the Agricultural Product Derivatives market in Jordan can make informed decisions and capitalize on the evolving landscape of agricultural finance.

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.