Agricultural Product Derivatives - Peru

Peru

The nominal value in the Agricultural Product Derivatives market is projected to reach US$55.03bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.03% resulting in a projected total amount of US$70.32bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.28 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 210.70k by 2029.

Market

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Analyst Opinion

The Agricultural Product Derivatives market in Peru is showing a notable increase in activity and interest among investors and traders.

Customer preferences: Investors in Peru are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The potential for high returns in a relatively short period is attracting a new wave of traders looking to capitalize on price movements in agricultural commodities.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in Peru is the growing demand for derivatives linked to local agricultural products such as coffee, cacao, and quinoa. As Peru is a major exporter of these commodities, investors are keen on speculating on their price fluctuations through derivative instruments. Additionally, the rise of sustainable and organic farming practices in the country is influencing the types of derivatives being traded, with a shift towards environmentally friendly and ethically sourced products.

Local special circumstances: Peru's unique geographical and climatic conditions play a significant role in shaping the Agricultural Product Derivatives market. The country's diverse range of microclimates allows for the cultivation of a wide variety of crops, leading to a dynamic market for derivatives linked to different agricultural products. Moreover, the government's efforts to promote agricultural exports and support local farmers are creating a favorable environment for derivative trading in the sector.

Underlying macroeconomic factors: The stability of Peru's economy and its strong agricultural sector are fundamental drivers of the growth in Agricultural Product Derivatives trading. As the country continues to experience steady economic growth and attract foreign investment, the derivatives market is expected to expand further. Additionally, the increasing integration of Peru into the global economy and trade networks is providing investors with more opportunities to participate in the agricultural derivatives market.

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.