Agricultural Product Derivatives - Malta

Malta

The nominal value in the Agricultural Product Derivatives market is projected to reach US$3.93bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.51% resulting in a projected total amount of US$4.90bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.11 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 33.33k by 2029.

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Analyst Opinion

In recent years, the Agricultural Product Derivatives market in Malta has shown an upward trend in terms of participation and trading activities. Customer preferences in Malta are shifting towards agricultural product derivatives as investors seek alternative investment opportunities beyond traditional financial instruments.

With increased awareness about the potential returns and risks associated with agricultural derivatives, more investors are diversifying their portfolios by including these products. Trends in the market indicate a growing interest in agricultural product derivatives among Maltese investors. This trend can be attributed to the global rise in commodity prices, which has sparked interest in agricultural derivatives as a way to hedge against inflation and diversify investment portfolios.

Additionally, the increasing integration of Malta into the global financial markets has provided investors with easier access to agricultural derivative products. Local special circumstances in Malta, such as limited agricultural production and reliance on imports for food supply, have also influenced the development of the agricultural product derivatives market. As a small island nation with limited arable land, Malta faces challenges in domestic agricultural production, making agricultural derivatives an attractive option for investors looking to participate in the agricultural sector.

Underlying macroeconomic factors, such as global supply and demand dynamics for agricultural products, government policies on agriculture, and international trade agreements, play a significant role in shaping the agricultural product derivatives market in Malta. Fluctuations in commodity prices, weather patterns affecting crop yields, and geopolitical events impacting global food supply chains can all influence trading activities and investor sentiment in the market.

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.