Agricultural Product Derivatives - Japan

Japan

The nominal value in the Agricultural Product Derivatives market is projected to reach €464.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of -0.67% resulting in a projected total amount of €448.90bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to €7.99 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 54.96k by 2029.

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Agricultural Product Derivatives market in Japan has been witnessing interesting developments in recent times.

Customer preferences: Investors in Japan have shown a growing interest in agricultural product derivatives as a means of diversifying their investment portfolios and hedging against market volatility. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without directly trading physical commodities.

Trends in the market: One notable trend in the Japanese Agricultural Product Derivatives market is the increasing adoption of technology in trading platforms. Online trading systems and mobile applications have made it easier for investors to participate in the market, leading to higher trading volumes and liquidity. Additionally, there is a growing trend towards the development of new derivative products tailored to the specific needs of Japanese investors, further driving market growth.

Local special circumstances: Japan's unique agricultural landscape and dependence on food imports due to limited arable land have contributed to the demand for agricultural product derivatives. The country's vulnerability to natural disasters and fluctuating global commodity prices make these derivatives an attractive option for managing risk in the agricultural sector. Moreover, the government's efforts to modernize the agricultural industry and promote sustainability have created opportunities for investors to engage in derivative trading linked to these initiatives.

Underlying macroeconomic factors: The overall economic environment in Japan, including factors such as interest rates, inflation, and currency exchange rates, plays a significant role in shaping the Agricultural Product Derivatives market. Changes in government policies, trade agreements, and global economic conditions can impact the prices of agricultural commodities and, in turn, influence derivative markets. As Japan continues to navigate economic challenges and demographic shifts, the demand for agricultural product derivatives is expected to remain robust as investors seek 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.