Agricultural Product Derivatives - Madagascar

Madagascar

The nominal value in the Agricultural Product Derivatives market is projected to reach US$3.13bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.34% resulting in a projected total amount of US$3.87bn 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 91.80k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Madagascar, known for its unique biodiversity and agricultural products, has seen a growing interest in Agricultural Product Derivatives.

Customer preferences: Traders and investors in Madagascar are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against price fluctuations in the global market.

Trends in the market: The market for Agricultural Product Derivatives in Madagascar is witnessing a steady growth due to the increasing demand for risk management tools in the agricultural sector. This trend is also influenced by the country's efforts to modernize its agricultural practices and improve productivity.

Local special circumstances: Madagascar's economy is heavily reliant on agriculture, with a significant portion of the population engaged in farming activities. As a result, the demand for Agricultural Product Derivatives is driven by the need to mitigate risks associated with unpredictable weather patterns, crop diseases, and global market volatility.

Underlying macroeconomic factors: The development of the Agricultural Product Derivatives market in Madagascar is also influenced by broader macroeconomic factors such as government policies, trade agreements, and global commodity prices. Additionally, the country's efforts to attract foreign investment and improve infrastructure play a crucial role in shaping the market dynamics for Agricultural Product Derivatives.

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.