Agricultural Product Derivatives - Myanmar

Myanmar

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$15.42bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.85% resulting in a projected total amount of US$19.55bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.19 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 83.87k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Myanmar, known for its rich agricultural landscape and diverse crops, has seen an interesting development in its Agricultural Product Derivatives market.

Customer preferences: Customers in Myanmar are increasingly turning to Agricultural Product Derivatives as a means of hedging against price volatility and managing risks associated with agricultural commodities. This trend is in line with global market behavior, where investors seek to diversify their portfolios and capitalize on the potential gains offered by commodity derivatives.

Trends in the market: In Myanmar, the Agricultural Product Derivatives market is witnessing a gradual expansion, driven by growing awareness among market participants about the benefits of using derivatives for price discovery and risk management. Market players are exploring a variety of derivative products such as futures and options to mitigate the impact of unpredictable factors like weather conditions and market fluctuations on their agricultural investments.

Local special circumstances: One of the key factors influencing the Agricultural Product Derivatives market in Myanmar is the country's heavy reliance on agriculture as a primary source of income. With a significant portion of the population engaged in farming activities, there is a natural inclination towards using derivatives to protect against adverse movements in commodity prices. Additionally, the government's efforts to promote agricultural modernization and improve productivity are creating a conducive environment for the growth of the derivatives market.

Underlying macroeconomic factors: The macroeconomic landscape in Myanmar, including factors such as inflation rates, exchange rate fluctuations, and government policies, plays a crucial role in shaping the Agricultural Product Derivatives market. As the country continues to undergo economic reforms and attract foreign investments, the demand for derivative products is expected to increase, offering market participants new opportunities to manage their agricultural risks effectively.

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.