Agricultural Product Derivatives - Senegal

Senegal

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$241.40m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.76% resulting in a projected total amount of US$290.40m by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.00 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 140.70k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Senegal is experiencing a notable shift in recent years.

Customer preferences: Customers in Senegal are increasingly turning to agricultural product derivatives as a means of diversifying their investment portfolios and managing risk. This trend is in line with global market behavior where investors seek alternative assets for hedging against market volatility.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in Senegal is the growing interest in derivatives linked to local staple crops such as millet and peanuts. This trend reflects the importance of these commodities in the Senegalese economy and the desire of market participants to speculate on their future prices.

Local special circumstances: Senegal's agricultural sector plays a vital role in its economy, with a significant portion of the population engaged in farming activities. This reliance on agriculture makes agricultural product derivatives particularly attractive to local investors and businesses looking to protect themselves from price fluctuations in the market.

Underlying macroeconomic factors: The stability of Senegal's economy and its efforts to promote agricultural development are key underlying macroeconomic factors driving the growth of the Agricultural Product Derivatives market. As the government continues to support the agricultural sector through various initiatives, investors are more confident in participating in derivative markets linked to agricultural products in the country.

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.