site.btaSofia Commodity Exchange Registers Record-Breaking Trade in 2024

Trade on the Sofia Commodity Exchange (SCE) in 2024 was record-breaking since its establishment, reaching BGN 845 million (BGN 844,574,105.34), compared to BGN 433 million in 2023, marking an increase of some 95%, year-on-year, SCE Executive Director Vasil Simov said in a BTA interview. Typically, SCE’s annual turnover ranges between BGN 400 and 600 million.

Commenting on the topic, Simov said: "The good thing is that this turnover was achieved during a complex situation in Bulgaria and abroad. It happened amidst numerous [snap parliamentary] elections and the absence of a regular government, during the wars in Ukraine and the Middle East, as well as the uncertainty following the U.S. presidential elections, when all of Europe stood still, unsure of what to do. In such circumstances, exchanges around the world drastically reduced their volumes, and traders became passive. Exactly in this 2024, when we were prepared for a tough year with little trade, we achieved this very good result".

"In 2024, SCE also launched electronic trading. For the world, this is a standard trading method. For many years, we had only in-person auctions, but we managed to create our own trading system, enabling brokers to remotely submit offers and conclude deals while maintaining in-person trading," Simov added.

A key focus of SCE’s work is monitoring price movements, Simov said. Trends in the prices of exchange-traded grain commodities were mixed. Sunflower saw the highest price increase, followed by maize, while wheat remained almost unchanged, and sugar was the most depreciated commodity.

Maize is a key grain crop and exchange commodity. Annually, over 1.2 billion tons of maize are produced worldwide. There is a clear trend of rising maize prices. The reason is periods of drought and compromised harvests in the U.S., the world's largest wheat producer. On an annual basis, the price of maize increased by 6% to 16%, as the U.S., the key market maker for this commodity, saw a 6% rise—from USD 214 per ton to USD 221 per ton at the beginning of the year. In France, maize prices rose by just 1%, from USD 204 per ton to USD 216 per ton excluding taxes. In Ukraine, the price increased by 16% over the year—from USD 185 per ton to USD 216 per ton, which matches the price in France, he further said.

The situation with wheat is different, Simov explained. In the U.S., wheat prices dropped by 10% to USD 230 per ton, while in France and Bulgaria, they remained stable at around USD 240 per ton. In Bulgaria, the price increased by 4% from January 2024 to early 2025, though fluctuations occurred throughout the year. Wheat prices typically rise before harvest and fall as stock accumulates. Additionally, higher-quality wheat commands higher prices, and delivery location matters. Thus, while the price of wheat in Bulgaria fluctuated throughout the year, the global trend remained stable, Simov explained.

Answering a question regarding the reinstatement of the 20% VAT rate starting in 2025, Simov commented that the price of bread has stabilized, and a 20% increase is natural. "Let us recall that when VAT dropped from 20% to 0%, bread prices did not decrease. Prices fell slightly for just one or two weeks," Simov noted. There are no prerequisites for more expensive bread because wheat prices, both globally and in Bulgaria, have not significantly increased. Electricity prices, fuel costs, and the minimum wage have risen, but not the price of wheat, he emphasized.

The price of sunflower oilseeds has risen even more than maize because the world’s largest sunflower producers, Russia and Ukraine, faced challenges. Bulgaria maintained a harvest of 1.8 million tons, sufficient for the country’s oil mills to produce sunflower oil. In Bulgaria, sunflower prices rose from BGN 700 per ton at the start of 2024 to over BGN 1,050 per ton.

At the Rotterdam exchange, where unrefined sunflower oil is traded, its price increased by 23%—from USD 935 per ton at the start of 2024 to USD 1,210 per ton now. Weak sunflower seed harvests in Ukraine, Russia, and the EU, along with a sharp rise in palm oil prices and geopolitical factors, contributed to maintaining the upward trend in the prices of sunflower seeds and sunflower oil in the EU and the Black Sea region in the second half of 2024, the head of the Sofia Commodity Exchange reported.

"In this dynamic 2024, oil turned out to be the calmest commodity. The year began with a price of USD 77 per barrel and ended at the same level. In recent months, oil prices fluctuated between USD 70 and USD 75 per barrel, which, given the complex international situation, was a pleasant surprise. Currently, fuel prices are lower than in January of last year, although they rose by 2-3 cents compared to December 2024 due to the [U.S.] dollar’s appreciation. We cannot influence fuel prices, as they are determined by global markets," Simov stated.

"Public procurements remain the driving force of exchange trade. However, only half of these are state and municipal structures. The rest are private companies that have started making deals among themselves," Simov concluded.