Agricultural Product Derivatives - United Kingdom

United Kingdom

The nominal value in the Agricultural Product Derivatives market is projected to reach €70.09bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -11.13% resulting in a projected total amount of €38.85bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to €29.62 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 2.98k by 2029.

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Analyst Opinion

The Agricultural Product Derivatives market in United Kingdom reflects a growing trend in financial instruments linked to agricultural commodities. Customer preferences in the United Kingdom indicate a shift towards alternative investments such as agricultural product derivatives.

Investors are increasingly looking for ways to diversify their portfolios and hedge against market volatility, driving the demand for these financial instruments. Trends in the market show a rise in the popularity of agricultural product derivatives due to their potential for high returns and as a way to speculate on price movements. The market is also witnessing an increase in the number of financial institutions offering these products to meet the growing demand from investors.

Local special circumstances in the United Kingdom, such as the country's strong agricultural sector and history of commodity trading, contribute to the development of the agricultural product derivatives market. The presence of established financial markets and regulatory frameworks further supports the growth of this market in the region. Underlying macroeconomic factors, including global supply and demand dynamics for agricultural products, geopolitical events impacting commodity prices, and overall economic conditions, play a significant role in shaping the Agricultural Product Derivatives market in the United Kingdom.

These factors influence investor sentiment and drive trading activity in agricultural product derivatives.

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.