Agricultural Product Derivatives - Panama

Panama

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$16.07bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.13% resulting in a projected total amount of US$20.64bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.05 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 214.60k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Panama is experiencing a notable increase in activity and interest.

Customer preferences: Panamanian customers are showing a growing inclination towards investing in Agricultural Product Derivatives as a way to diversify their portfolios and hedge against market volatility. This trend is in line with the global movement towards alternative investments and risk management strategies.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in Panama is the increasing adoption of online trading platforms and mobile applications by investors. This shift towards digital platforms has made it easier for individuals to participate in the market, leading to a surge in trading volume and market liquidity. Additionally, there is a rising demand for Agricultural Product Derivatives linked to specific commodities that are important to Panama's economy, such as coffee and bananas.

Local special circumstances: Panama's strategic location as a major transportation hub in Central America plays a significant role in shaping the Agricultural Product Derivatives market in the country. The proximity to key agricultural regions and access to international markets make Panama an attractive destination for investors looking to trade in agricultural commodities. Furthermore, the country's stable political environment and favorable regulatory framework contribute to creating a conducive atmosphere for derivative trading activities.

Underlying macroeconomic factors: The overall economic stability and steady growth of Panama's economy are fundamental drivers behind the development of the Agricultural Product Derivatives market. As the country continues to strengthen its position as a regional financial center, investors are increasingly drawn to the opportunities presented by agricultural derivatives. Moreover, the government's efforts to promote agricultural productivity and exports are bolstering confidence in the sector, further fueling the demand for related financial instruments.

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.