Agricultural Product Derivatives - Singapore

Singapore

The nominal value in the Agricultural Product Derivatives market is projected to reach €67.97bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.10% resulting in a projected total amount of €87.16bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to €0.03 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 2.15m by 2029.

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Región

Comparación de regiones

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Analyst Opinion

The Agricultural Product Derivatives market in Singapore has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Singapore are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The convenience and flexibility of trading these financial instruments attract both institutional and retail investors looking to capitalize on price movements in the agricultural sector.

Trends in the market: One notable trend in the Singaporean Agricultural Product Derivatives market is the growing demand for derivatives linked to key commodities such as palm oil, rubber, and soybeans. These products are closely tied to global supply and demand dynamics, making them attractive options for investors seeking exposure to the agricultural sector. Additionally, the introduction of innovative derivative products tailored to the specific needs of Singaporean investors has further fueled market growth.

Local special circumstances: Singapore's strategic location as a major financial hub in Asia plays a crucial role in driving the development of the Agricultural Product Derivatives market. The country's well-established regulatory framework and infrastructure provide a conducive environment for trading these financial instruments. Moreover, Singapore's status as a leading commodity trading center attracts a diverse range of market participants, contributing to the vibrancy of the Agricultural Product Derivatives market.

Underlying macroeconomic factors: The stability of Singapore's economy and its strong regulatory oversight have instilled confidence among investors, encouraging greater participation in the Agricultural Product Derivatives market. Additionally, the country's focus on innovation and technology has led to the introduction of advanced trading platforms and tools, making it easier for investors to access and trade agricultural derivatives. Overall, Singapore's favorable business environment and market-friendly policies continue to drive the growth of the Agricultural Product Derivatives market in the country.

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.