The CEO of the Sofia Commodity Exchange Vasil Simov dismissed speculation about any dramatic price hikes on the market, stating that current conditions did not support such developments. Speaking on market trends in agricultural goods such as wheat, corn, sunflower and oil, Simov stressed that barring major geopolitical disruptions – especially wars – the market situation was expected to remain stable at least through the end of summer.
According to him, the recent global wheat harvest exceeded 806 million tons, driving down prices on leading exchanges in the U.S. and France by 10% to 13% over the past year. A similar trend is visible in the Black Sea region, including Russia, Ukraine and Bulgaria. Bread wheat prices show no upward pressure, as the strong harvest is offsetting other market influences.
Corn prices are following a similar path. Though the bulk of the harvest is expected in September, projections already point to a bumper crop of over 1.27 billion tons globally. Simov noted a temporary price rise in Ukraine but expressed confidence that summer trends would bring levels back in line with last year – around 0 per ton.
The sugar market continues its downward trajectory, marking a second consecutive year of decline. Refined sugar prices have dropped by roughly 15-16%, driven by falling consumption even as production remains steady.
Oil markets also reflect a more moderate trend. Brent crude is currently trading at per barrel, down from last year. Simov noted a slight seasonal increase in recent weeks due to higher summer demand, but he emphasized that prices remained significantly lower than in the previous year, which was already being felt at the gas stations.
Simov firmly rejected fears of price spikes, stating that market fundamentals did not support such concerns. Even commodity categories not discussed in detail, such as metals, remain stable. His outlook was clear: unless major external shocks occured, markets were poised to stay calm in the months ahead. (Novinite)