Agricultural Product Derivatives - South Korea

South Korea

The nominal value in the Agricultural Product Derivatives market is projected to reach €458.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.52% resulting in a projected total amount of €470.50bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to €0.69 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 722.90k by 2029.

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Analyst Opinion

Amidst the growing trend of financial derivatives in South Korea, the Agricultural Product Derivatives market in the country is experiencing notable developments.

Customer preferences: South Korean investors are increasingly showing interest in diversifying their portfolios by including agricultural product derivatives. This trend is driven by a desire to hedge against market volatility and take advantage of potential opportunities for profit in the derivatives market.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in South Korea is the introduction of new and innovative derivative products tailored to meet the specific needs of local investors. These products are designed to provide exposure to agricultural commodities while managing risk effectively.

Local special circumstances: South Korea's strong agricultural sector and reliance on imports for certain commodities create a unique environment for the development of agricultural product derivatives. The country's focus on food security and agricultural sustainability further enhances the relevance of these derivatives in the local market.

Underlying macroeconomic factors: The overall economic stability and growth in South Korea play a significant role in driving the demand for agricultural product derivatives. As investors seek ways to navigate market uncertainties and capitalize on emerging opportunities, the derivatives market offers a viable avenue for achieving their financial goals. Additionally, government initiatives to promote derivatives trading and enhance market infrastructure contribute to the market's expansion.

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.