Agricultural Product Derivatives - Papua New Guinea

Papua New Guinea

The nominal value in the Agricultural Product Derivatives market is projected to reach US$8.65bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.80% resulting in a projected total amount of US$9.00bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.04 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 189.30k by 2029.

Market

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Analyst Opinion

The Agricultural Product Derivatives market in Papua New Guinea is experiencing a shift in dynamics driven by various factors.

Customer preferences: Customers in Papua New Guinea are increasingly showing interest in Agricultural Product Derivatives as a means of diversifying their investment portfolios and managing risk in the volatile market.

Trends in the market: One of the notable trends in the Agricultural Product Derivatives market in Papua New Guinea is the growing demand for derivatives linked to local agricultural products such as coffee and cocoa. This trend is influenced by the country's strong agricultural sector and the desire to hedge against price fluctuations in these key commodities.

Local special circumstances: Papua New Guinea's unique position as a major producer of coffee and cocoa has a significant impact on the Agricultural Product Derivatives market. The country's reliance on these agricultural products for export revenue makes derivatives linked to their prices particularly attractive to local investors and businesses looking to manage their exposure to market risks.

Underlying macroeconomic factors: The macroeconomic landscape in Papua New Guinea, including factors such as exchange rate fluctuations, government policies, and global market trends, plays a crucial role in shaping the Agricultural Product Derivatives market. As the country continues to navigate economic challenges and strive for stability, the demand for derivatives as a risk management tool is expected to remain strong.

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.