Agricultural Product Derivatives - Paraguay

Paraguay

The nominal value in the Agricultural Product Derivatives market is projected to reach US$8.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.99% resulting in a projected total amount of US$10.46bn 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 1.00m by 2029.

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Analyst Opinion

Amidst the lush landscapes of Paraguay, the Agricultural Product Derivatives market is experiencing significant growth and evolution. Customer preferences in Paraguay are increasingly leaning towards Agricultural Product Derivatives as a means of investment and risk management.

Investors are drawn to the potential for high returns and portfolio diversification that these derivatives offer, especially in a market where traditional investment options may be limited. In Paraguay, a notable trend in the Agricultural Product Derivatives market is the increasing participation of small-scale farmers and agricultural businesses. This trend is driven by the desire to hedge against price fluctuations in key commodities like soybeans and corn, which are vital to the country's economy.

Additionally, the growing awareness and accessibility of derivative products are empowering local players to actively engage in the market. Local special circumstances, such as the country's heavy reliance on agriculture as a primary economic driver, play a pivotal role in shaping the Agricultural Product Derivatives market in Paraguay. The vulnerability of the agricultural sector to external factors like weather conditions and global market trends underscores the importance of risk management tools like derivatives.

As a result, market participants are increasingly turning to these financial instruments to mitigate potential losses and secure their financial positions. Underlying macroeconomic factors, including Paraguay's stable economic growth and favorable regulatory environment, provide a conducive backdrop for the expansion of the Agricultural Product Derivatives market. The government's efforts to promote financial inclusion and market transparency further support the development of derivative trading in the country.

Overall, the combination of customer preferences, market trends, local circumstances, and macroeconomic factors is propelling the Agricultural Product Derivatives market in Paraguay towards a path of sustained growth and sophistication.

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.