Agricultural Product Derivatives - Australia

Australia

The nominal value in the Agricultural Product Derivatives market is projected to reach €0.71bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.10% resulting in a projected total amount of €0.75bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to €0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€11,430.00bn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 263.50k by 2029.

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Analyst Opinion

The Agricultural Product Derivatives market in Australia is witnessing a surge in popularity among investors and traders.

Customer preferences: Investors in Australia are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The ease of trading these derivatives and the potential for high returns are attracting a growing number of participants to the market.

Trends in the market: One prominent trend in the Australian Agricultural Product Derivatives market is the growing demand for derivatives linked to specific agricultural commodities such as wheat, barley, and sugar. This trend is driven by the country's strong agricultural sector and the need for risk management tools among farmers and agribusinesses.

Local special circumstances: Australia's unique climate conditions and geographic location play a significant role in shaping the Agricultural Product Derivatives market. The country's exposure to natural disasters such as droughts and bushfires underscores the importance of risk management strategies, making agricultural derivatives an attractive option for market participants.

Underlying macroeconomic factors: The stability of Australia's economy, coupled with its status as a major agricultural exporter, provides a favorable environment for the growth of Agricultural Product Derivatives. Additionally, government policies supporting the agricultural sector and advancements in technology are further driving the development of the market.

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.