Agricultural Product Derivatives - Turkey

Turkey

The nominal value in the Agricultural Product Derivatives market is projected to reach US$2.88bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.59% resulting in a projected total amount of US$3.78bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.11 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 25.79k by 2029.

Market

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Currency

Analyst Opinion

Turkey, situated at the crossroads of Europe and Asia, has seen significant growth and development in its Agricultural Product Derivatives market.

Customer preferences: Customers in Turkey are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against price fluctuations in the agricultural sector. This trend is in line with global market behavior, where investors are seeking alternative investment options beyond traditional financial instruments.

Trends in the market: The Agricultural Product Derivatives market in Turkey has been witnessing a surge in trading volumes and market participation. This can be attributed to the growing awareness among investors about the benefits of derivatives trading, such as increased liquidity and flexibility. Moreover, the introduction of new derivative products tailored to the Turkish market has also contributed to this trend.

Local special circumstances: One of the key factors driving the growth of Agricultural Product Derivatives in Turkey is the country's strong agricultural sector. Turkey is a major producer of agricultural commodities like grains, fruits, and vegetables, making it an attractive market for derivatives linked to these products. Additionally, the government's efforts to promote derivative trading and create a favorable regulatory environment have further boosted market activity.

Underlying macroeconomic factors: The macroeconomic landscape in Turkey, including factors like inflation rates, interest rates, and exchange rate movements, plays a crucial role in shaping the Agricultural Product Derivatives market. Investors often turn to derivatives as a way to manage risks associated with these macroeconomic variables. As Turkey continues to implement economic reforms and strengthen its financial markets, the demand for Agricultural Product Derivatives is expected to grow further.

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.