Agricultural Product Derivatives - Southeast Asia

Southeast Asia

The nominal value in the Agricultural Product Derivatives market is projected to reach US$516.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.81% resulting in a projected total amount of US$622.00bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.12 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 4.11m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the dynamic landscape of Southeast Asia, the Agricultural Product Derivatives market is experiencing notable shifts and developments. Customer preferences in the region are gravitating towards more diverse investment options, with a growing interest in agricultural product derivatives.

Investors are increasingly looking for alternative assets to diversify their portfolios and mitigate risks. This trend is fueled by the potential for higher returns compared to traditional investments and the opportunity to benefit from the volatility in commodity markets. Trends in the market vary across countries in Southeast Asia.

For instance, in Indonesia, there is a rising demand for agricultural product derivatives as investors seek exposure to the country's thriving agricultural sector. On the other hand, in Vietnam, the market is witnessing increased participation from retail investors attracted to the potential profits offered by agricultural product derivatives. Local special circumstances play a significant role in shaping the Agricultural Product Derivatives market in Southeast Asia.

For example, in Thailand, government policies to promote agricultural productivity and exports are driving interest in derivatives linked to key commodities like rice and rubber. In Malaysia, the market is influenced by the country's position as a major palm oil producer, leading to a focus on derivatives related to palm oil prices. Underlying macroeconomic factors such as global commodity prices, trade policies, and currency movements also impact the Agricultural Product Derivatives market in Southeast Asia.

Fluctuations in commodity prices, supply chain disruptions, and geopolitical events can create opportunities for investors in the derivatives market. Additionally, economic growth, inflation rates, and regulatory changes play a role in shaping investor sentiment and market dynamics in the region.

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.