Agricultural Product Derivatives - Malaysia

Malaysia

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$42.27bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.36% resulting in a projected total amount of US$45.22bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.13 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 344.60k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Amidst the diverse agricultural landscape of Malaysia, the Agricultural Product Derivatives market is experiencing notable growth and evolution.

Customer preferences: Customers in Malaysia are showing an increasing interest in agricultural product derivatives as a way to diversify their investment portfolios and hedge against price fluctuations in the global market. The demand for these financial instruments is being driven by a growing awareness of the benefits of risk management and speculation in the agricultural sector.

Trends in the market: One prominent trend in the Malaysian Agricultural Product Derivatives market is the rising popularity of palm oil futures. Malaysia being one of the largest producers of palm oil globally, investors are closely monitoring the price movements of palm oil derivatives. Additionally, there is a growing interest in rubber futures, reflecting Malaysia's significant role in the rubber industry. The market is also witnessing an uptick in trading volumes of other agricultural derivatives such as rice and pepper, indicating a broadening scope of investment opportunities in the country.

Local special circumstances: Malaysia's unique position as a key player in the global palm oil and rubber markets is influencing the dynamics of the Agricultural Product Derivatives market. The country's strong presence in these commodities is attracting both domestic and international investors to participate in derivative trading linked to palm oil and rubber prices. Furthermore, the government's initiatives to promote the derivatives market as part of the overall financial ecosystem are creating a conducive environment for market growth.

Underlying macroeconomic factors: The stability of Malaysia's economy, coupled with its strategic geographical location, is bolstering the Agricultural Product Derivatives market. As a major agricultural producer in the region, Malaysia benefits from robust supply chains and trading networks that support the derivatives market. Moreover, the country's regulatory framework and infrastructure development are enhancing the efficiency and transparency of agricultural derivative transactions, attracting more participants to engage in the market.

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.