Agricultural Product Derivatives - Western Asia

Western Asia

The nominal value in the Agricultural Product Derivatives market is projected to reach US$184.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.85% resulting in a projected total amount of US$222.60bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.01 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 28.15m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in Western Asia is experiencing a notable shift in recent years.

Customer preferences: Customers in Western Asia are increasingly showing interest in agricultural product derivatives as a way to diversify their investment portfolios and hedge against market volatility. The convenience of trading these financial instruments online has also attracted a new wave of retail investors to the market.

Trends in the market: One of the prominent trends in the Agricultural Product Derivatives market in Western Asia is the growing popularity of derivatives linked to staple crops such as wheat, barley, and corn. This trend is driven by the region's heavy reliance on agriculture and the need for risk management tools in the face of unpredictable weather conditions and fluctuating commodity prices.

Local special circumstances: Western Asia's unique geopolitical landscape and agricultural practices play a significant role in shaping the Agricultural Product Derivatives market in the region. The presence of large-scale commercial farms alongside smallholder farmers creates a diverse market with varying risk profiles, influencing the demand for different types of derivatives.

Underlying macroeconomic factors: The economic stability and growth prospects of countries in Western Asia are crucial factors influencing the development of the Agricultural Product Derivatives market. As governments in the region strive to modernize their agricultural sectors and improve food security, there is a growing need for sophisticated financial instruments to manage risks and attract investment in the sector.

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.