Agricultural Product Derivatives - North America

North America

The nominal value in the Agricultural Product Derivatives market is projected to reach US$13.22tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.10% resulting in a projected total amount of US$13.96tn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.02 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 594.30m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in North America is experiencing significant growth and evolution, driven by various factors shaping the region's financial landscape.

Customer preferences: Traders and investors in North America are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The convenience of trading these derivatives electronically and the potential for high returns are attracting a growing number of market participants.

Trends in the market: In the United States, the world's largest economy, the Agricultural Product Derivatives market is witnessing a surge in trading activity. This trend is fueled by the country's strong agricultural sector, which provides a wide range of underlying assets for derivatives trading. Additionally, the presence of sophisticated financial institutions and a well-established regulatory framework further boost the market's growth.

Local special circumstances: Canada, another key player in the North American market, has its own unique set of circumstances influencing the Agricultural Product Derivatives landscape. The country's vast agricultural resources and stable economic environment make it an attractive destination for derivatives trading. Moreover, the close integration with the US market allows for seamless cross-border transactions, facilitating increased market liquidity and efficiency.

Underlying macroeconomic factors: The overall growth of the Agricultural Product Derivatives market in North America is also influenced by macroeconomic factors such as interest rates, inflation, and geopolitical events. As central banks adjust monetary policies and trade dynamics evolve, market participants in the region must adapt their trading strategies to navigate changing market conditions. Additionally, factors like climate change and technological advancements in agriculture play a role in shaping the market's future trajectory.

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.