Agricultural Product Derivatives - New Zealand

New Zealand

The nominal value in the Agricultural Product Derivatives market is projected to reach US$1.16bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.68% resulting in a projected total amount of US$1.39bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.00 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 271.10k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in New Zealand has been witnessing a shift in customer preferences towards more diverse and innovative financial products.

Customer preferences: New Zealand customers are increasingly looking for agricultural product derivatives that offer not only traditional risk management tools but also opportunities for speculative trading. This shift is driven by the desire for greater flexibility and potential for higher returns.

Trends in the market: One notable trend in the New Zealand Agricultural Product Derivatives market is the growing popularity of derivatives linked to unique agricultural products specific to the region. This trend reflects a global movement towards niche market offerings and tailored financial instruments.

Local special circumstances: New Zealand's strong agricultural sector, known for its high-quality products like dairy and wool, influences the demand for agricultural product derivatives in the country. The presence of a well-established agricultural industry creates a conducive environment for the development and trading of related financial instruments.

Underlying macroeconomic factors: The stable economic environment in New Zealand, coupled with a focus on innovation and technology in the agricultural sector, contributes to the growth of the Agricultural Product Derivatives market. Additionally, the country's strategic location and trade relationships play a significant role in shaping market dynamics.

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.