Agricultural Product Derivatives - Northern Africa

Northern Africa

The nominal value in the Agricultural Product Derivatives market is projected to reach US$8.33bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.91% resulting in a projected total amount of US$11.10bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.01 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 1.16m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in Northern Africa is showing promising developments. Customer preferences in Northern Africa are increasingly leaning towards agricultural product derivatives as a way to diversify investment portfolios and hedge against market volatility.

Investors are attracted to the potential for high returns offered by these financial instruments. Trends in the market indicate a growing interest in derivatives linked to key agricultural commodities such as wheat, barley, and corn. This trend is driven by the region's reliance on agriculture as a significant economic sector, making these derivatives particularly relevant for stakeholders looking to manage price risks effectively.

Local special circumstances, such as the impact of climate change on agricultural production in Northern Africa, play a crucial role in shaping the dynamics of the derivatives market. Fluctuations in crop yields due to unpredictable weather patterns create a heightened need for risk management tools, further driving the demand for agricultural product derivatives. Underlying macroeconomic factors, including government policies to promote agricultural development and the increasing integration of Northern African economies into global markets, are also contributing to the growth of the agricultural product derivatives market in the region.

These factors provide a conducive environment for market participants to engage in derivative transactions effectively.

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.