Agricultural Product Derivatives - Niger

Niger

The nominal value in the Agricultural Product Derivatives market is projected to reach US$57.81m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.60% resulting in a projected total amount of US$79.56m 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 31.49k by 2029.

Market

Region

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Analyst Opinion

The Agricultural Product Derivatives market in Niger is experiencing a notable shift in recent years.

Customer preferences: Customers in Niger are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical commodities.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in Niger is the growing interest from institutional investors, including pension funds and asset management companies. This influx of institutional capital is driving liquidity in the market and leading to more sophisticated trading strategies being employed. Additionally, there is a rising demand for customized derivative products tailored to the specific needs of local investors.

Local special circumstances: Niger's agricultural sector plays a crucial role in the country's economy, with a significant portion of the population engaged in farming activities. As a result, there is a natural inclination towards agricultural-based derivatives as a familiar investment option. Moreover, the government's efforts to promote agricultural development and improve market efficiency are further fueling interest in Agricultural Product Derivatives among local investors.

Underlying macroeconomic factors: The macroeconomic landscape in Niger, characterized by stable economic growth and low inflation, provides a conducive environment for the development of the Agricultural Product Derivatives market. Additionally, the country's strategic location within the West African region positions it as a hub for agricultural trade, attracting both domestic and foreign investors looking to participate in the market. These factors, combined with a growing awareness of the benefits of derivatives trading, are driving the expansion of the Agricultural Product Derivatives market in Niger.

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.