Agricultural Product Derivatives - Canada

Canada

The nominal value in the Agricultural Product Derivatives market is projected to reach €537.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.23% resulting in a projected total amount of €600.60bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to €0.57 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€11,310.00bn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 983.80k by 2029.

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Analyst Opinion

The Agricultural Product Derivatives market in Canada is witnessing a surge in interest and activity.

Customer preferences: Investors in Canada are increasingly turning to Agricultural Product Derivatives as a way to diversify their portfolios and hedge against market volatility. The transparency and liquidity of these financial instruments are appealing to a wide range of investors, from institutional players to individual traders.

Trends in the market: One notable trend in the Canadian Agricultural Product Derivatives market is the growing demand for derivatives linked to specific agricultural commodities such as wheat, corn, and soybeans. This trend is driven by the country's strong agricultural sector, which is a significant contributor to the national economy. As investors seek exposure to these commodities without directly trading physical goods, the market for Agricultural Product Derivatives continues to expand.

Local special circumstances: Canada's unique position as a major agricultural exporter plays a crucial role in shaping the dynamics of the Agricultural Product Derivatives market. The country's diverse agricultural landscape, which includes a wide variety of crops and livestock, provides ample opportunities for derivative products linked to different commodities. Additionally, the country's stringent regulatory environment ensures a level playing field for market participants and instills confidence in the integrity of derivative transactions.

Underlying macroeconomic factors: Several macroeconomic factors are influencing the development of the Agricultural Product Derivatives market in Canada. The country's stable economic growth, coupled with its strong agricultural production, creates a favorable environment for derivative trading. Moreover, global trends such as increasing food demand and climate change effects on agriculture are driving interest in agricultural derivatives as investors look for ways to manage risk and capitalize on market opportunities.

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.