Agricultural Product Derivatives - Latvia

Latvia

The nominal value in the Agricultural Product Derivatives market is projected to reach US$8.96bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.23% resulting in a projected total amount of US$11.56bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.15 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 56.23k by 2029.

Market

Region

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Currency

Analyst Opinion

Latvia, known for its rich agricultural heritage, has seen a steady development in its Agricultural Product Derivatives market.

Customer preferences: Customers in Latvia are increasingly turning to Agricultural Product Derivatives as a way to hedge against price fluctuations in the market. This trend is in line with the global shift towards risk management strategies in the agricultural sector.

Trends in the market: One noticeable trend in the Agricultural Product Derivatives market in Latvia is the growing interest in commodity futures and options. Market participants are actively engaging in trading these derivatives to capitalize on price movements in agricultural products without the need for physical ownership.

Local special circumstances: Latvia's unique 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 driver makes it particularly sensitive to factors like weather patterns and global market trends, further driving the demand for derivatives as a risk management tool.

Underlying macroeconomic factors: The overall economic stability and growth in Latvia have also contributed to the development of the Agricultural Product Derivatives market. As the country continues to strengthen its position in the European Union, market participants are gaining confidence in the regulatory framework and market infrastructure, further fueling the growth of derivatives trading in the agricultural sector.

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.