Agricultural Product Derivatives - Portugal

Portugal

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$58.00bn 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$74.00bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.16 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 354.10k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Portugal is experiencing a notable shift in recent times.

Customer preferences: Portuguese investors are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these derivatives lies in their potential for high returns and the ability to speculate on price movements without owning the physical commodities.

Trends in the market: One key trend in the Agricultural Product Derivatives market in Portugal is the growing interest in derivatives linked to olive oil and wine. Portugal is known for its high-quality olive oil and wine production, making these derivatives attractive to both domestic and international investors. Additionally, there is a rising demand for derivatives related to cork, given Portugal's significant cork industry.

Local special circumstances: Portugal's agricultural sector plays a vital role in the economy, contributing to exports and employment. As such, there is a strong connection between the performance of the agricultural sector and the demand for Agricultural Product Derivatives in the country. The government's support for the agricultural industry and efforts to promote sustainability also influence the development of the derivatives market.

Underlying macroeconomic factors: The overall economic stability and growth in Portugal, coupled with favorable regulatory environment for financial markets, are supporting the expansion of the Agricultural Product Derivatives market. Additionally, the increasing integration of Portugal into the global economy and trade partnerships are creating opportunities for investors to access a wider range of agricultural derivatives.

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.