Agricultural Product Derivatives - Puerto Rico

Puerto Rico

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$26.52bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.09% resulting in a projected total amount of US$34.00bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.15 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 194.60k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Puerto Rico has been experiencing notable developments in recent years. Customer preferences in Puerto Rico are leaning towards a more diverse range of agricultural product derivatives, driven by the increasing demand for risk management tools and investment opportunities in the market.

Trends in the market indicate a growing interest in agricultural product derivatives that are tailored to the specific crops and commodities produced in Puerto Rico, such as coffee, sugarcane, and plantains. This trend is fueled by the need for hedging against price volatility and weather-related risks in the region. Local special circumstances, such as the unique agricultural landscape of Puerto Rico and its vulnerability to natural disasters, play a significant role in shaping the Agricultural Product Derivatives market.

As a result, there is a heightened focus on developing innovative derivative products that can address the specific needs of local farmers and investors. Underlying macroeconomic factors, including the overall economic stability of Puerto Rico and its reliance on agriculture as a key sector, are also influencing the dynamics of the Agricultural Product Derivatives market. The market is responding to these factors by offering a wider array of derivative instruments that cater to the risk management and investment needs of stakeholders in the agricultural industry.

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.