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 5.35% 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 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 199.10k by 2029.

Market

Region

Region comparison

Currency

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.