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Agricultural Product Derivatives - Uganda

Uganda
  • The nominal value in the Agricultural Product Derivatives market is projected to reach US$8.86bn in 2024.
  • It is expected to show an annual growth rate (CAGR 2024-2029) of 5.34% resulting in a projected total amount of US$11.50bn by 2029.
  • The average price per contract in the Agricultural Product Derivatives market amounts to US$0.03 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 199.10k by 2029.

Definition:

The Agricultural Product Derivatives market refers to derivatives of agricultural products such as coffee or rice. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of rice, an investor could own a derivative of rice). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular Agricultural product derivatives are coffee, rice, or barley.

In-Scope

  • Agricultural Product Derivatives, e.g. cotton, wheat, rice

Out-Of-Scope

  • Physical agricultural products
Agricultural Product Derivatives: market data & analysis - Cover

Market Insights report

Agricultural Product Derivatives: market data & analysis

Study Details

    Value Development

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Volume

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Most recent update: Jul 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Agricultural Product Derivatives market in Uganda has been showing promising developments in recent years. Customer preferences in Uganda are increasingly leaning towards Agricultural Product Derivatives as a way to hedge against price volatility and manage risk in the agricultural sector.

    Farmers, traders, and investors are looking for innovative financial tools to protect themselves from unpredictable market conditions. Trends in the market indicate a growing demand for Agricultural Product Derivatives in Uganda, driven by the need for price stability and risk management in the agriculture industry. As the country's economy continues to develop, there is a rising interest in financial instruments that can provide security and ensure profitability in agricultural activities.

    Local special circumstances, such as the importance of agriculture in Uganda's economy and the prevalence of smallholder farming, further contribute to the growth of the Agricultural Product Derivatives market. With a large portion of the population engaged in agriculture, there is a natural inclination towards utilizing derivatives to safeguard against potential losses and optimize returns. Underlying macroeconomic factors, including inflation rates, government policies, and global market trends, also play a significant role in shaping the Agricultural Product Derivatives market in Uganda.

    As the country navigates economic challenges and strives for sustainable growth, the demand for risk management tools like derivatives is expected to continue rising.

    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.

    Financial

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    Agricultural Product Derivatives: market data & analysis - BackgroundAgricultural Product Derivatives: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

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