Agricultural Product Derivatives - Kazakhstan

Kazakhstan

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$14.16bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.32% resulting in a projected total amount of US$18.34bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.08 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 181.30k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Kazakhstan is experiencing a notable shift driven by changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Kazakhstan are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The convenience and flexibility offered by these financial instruments are attracting a growing number of investors looking to capitalize on the fluctuations in agricultural commodity prices.

Trends in the market: One of the key trends shaping the Agricultural Product Derivatives market in Kazakhstan is the growing interest in commodities such as wheat, barley, and corn derivatives. As Kazakhstan is a major producer of these agricultural products, investors are keen on leveraging derivatives linked to these commodities to take advantage of price movements in the global market. Additionally, the adoption of advanced trading technologies and online platforms is making it easier for investors to participate in the market.

Local special circumstances: Kazakhstan's strategic location as a bridge between Europe and Asia, along with its rich agricultural resources, plays a significant role in driving the demand for Agricultural Product Derivatives. The country's focus on modernizing its agricultural sector and improving productivity is creating opportunities for investors to engage in derivatives linked to the local agricultural market. Moreover, the government's efforts to promote derivative trading and enhance market transparency are further fueling the growth of this market.

Underlying macroeconomic factors: The overall economic stability and growth in Kazakhstan, coupled with the increasing integration of the country into the global economy, are providing a favorable environment for the development of the Agricultural Product Derivatives market. As investors seek alternative investment opportunities beyond traditional asset classes, derivatives linked to agricultural products are gaining traction in Kazakhstan. Additionally, the government's initiatives to strengthen the regulatory framework and attract foreign investment are instilling confidence in the market participants.

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.