Agricultural Product Derivatives - Uruguay

Uruguay

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$15.14bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.20% resulting in a projected total amount of US$19.50bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.10 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 175.40k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Uruguay is experiencing a shift in customer preferences towards more diversified investment options.

Customer preferences: Uruguayan investors are increasingly looking for alternative investment opportunities beyond traditional financial instruments. This shift is driven by a growing interest in exploring higher-risk, higher-return options such as agricultural product derivatives. Additionally, there is a rising demand for sustainable and socially responsible investment choices in the market.

Trends in the market: In Uruguay, the Agricultural Product Derivatives market is witnessing a surge in trading activity, particularly in derivatives linked to key agricultural commodities such as soybeans, corn, and cattle. Investors are attracted to the potential for significant returns offered by these derivatives, especially during periods of market volatility. Moreover, there is a noticeable trend towards the use of agricultural derivatives as a hedging tool to manage risk exposure in the face of fluctuating commodity prices.

Local special circumstances: Uruguay's strong agricultural sector plays a crucial role in driving the demand for agricultural product derivatives. The country is known for its production of high-quality agricultural commodities, making it an attractive market for investors looking to capitalize on the performance of these assets. Additionally, Uruguay's stable political environment and well-established regulatory framework contribute to the growing popularity of agricultural derivatives among local investors.

Underlying macroeconomic factors: The development of the Agricultural Product Derivatives market in Uruguay is also influenced by broader macroeconomic factors such as global trade dynamics, currency fluctuations, and interest rate movements. As investors seek to diversify their portfolios and enhance returns, the demand for agricultural derivatives is expected to continue growing in response to changing market conditions. Furthermore, ongoing efforts to promote financial market innovation and expand access to derivative products are likely to further fuel the market's growth in Uruguay.

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.