Recession down the prices of goods exchange

Since the beginning of the year there is a clear trend to lower stock prices of most goods, says Vasil Simov CEO of the Sofia Stock Exchange / SSB. Experts agree that the recession down the prices of most goods in exchange.
In Germany from January poevtinya wheat with 44 percent to the equivalent of 196 dollars per tonne. In France it is sold at 190 dollars in the U.S. – $ 200 in Russia – 175 dollars, in Ukraine – 170 dollars per tonne, while in Bulgaria – on average 166 dollars per tonne. Grain prices in Russia and Ukraine are stable in March and is not influenced by the market because the state reserve to intervene directly in trade and maintain a specific state price of SSB comment. Production of wheat in the world this year is expected to be 652 million tonnes, which is less than the record levels last year. Previous stocks of wheat are, however, with 18 million tonnes more than in 2008 and reach 168 million tons / 150 million tons in reserves in 2008. Consumption of wheat imports and also reduce the main purchasers countries fell sharply, which also determines the fall in the price of wheat, experts indicate. Countries with less import of wheat this year as Egypt, Morocco and Algeria. Authorities in Morocco stated that drastically reduce imports by 4.2 million tonnes in the year 2008 will only buy 1.5 million tonnes. Harvest of wheat in Bulgaria this year is expected to be 3.6 – 3.8 million tonnes. In 2008 the harvest reached a record for recent years, 4.2 million tonnes. Wheat would be sufficient, there will be one – one and a half million tonnes for export. Critical to our agricultural crops are of 2.2 – 2.4 million tons of wheat, and all over the 2.8 – 3.0 million tonnes can be considered a very good harvest, experts commented. Problem with wheat in Bulgaria is the quality to deteriorate mainly because of poor seeds and inadequate fertilization and irrigation areas, they noted. In our country only 10 percent of the crop can be defined as bread wheat, the remaining 90 percent are feed wheat. Last year, wheat is trading at the beginning of July at 320 euro per tonne. Now SSB offers bid is within 170 – 190 BGN. Levels of supply of wheat on the exchange are in the range 210 – 250 BGN. It is expected that dealings in the new wheat crop to be around 230 – 250 euro per tonne excluding VAT, experts believe SSB.
Pressures in our market for a lower price of wheat will come from Russia and Ukraine, where the wait record level of harvest. In order to competitive – you need to get the price Simov Vasil said.
According to observers of the market price of corn will jump because of a weak harvest and increased consumption, indicated by the SSB. In 2009 production is expected to raise corn by 15 million tonnes – up to 749 million tonnes. However, consumption is higher and will reach 781 million tonnes. Now the price of maize in the U.S. is 173 dollars per tonne, in Hungary – 172 dollars, and in Ukraine – 140 dollars per tonne.
When sunflower oil was observed slight rise at the beginning of the year because of expectations for a lower yield, but lower prices compared to June 2008. Currently sunflower / last year’s crop is being sold in Ukraine at a price 335 dollars per tonne to 342 dollars in Hungary and Russia for 298 dollars / tonne. At the beginning of the year sunflower was sold in these countries at levels of 212 to 255 dollars per tonne. The price of sunflower and directly impacts on the price of oil obtained from this material. Exchange of raw oil in Rotterdam was sold at levels 850 dollars per tonne, while in the beginning of the year it is marketed in around 780 dollars per tonne. At the end of June in Bulgaria one liters bottle of oil is traded in bulk around 1.50 – 1.60 leva without VAT, and last year has run 2.70 euro

In the sugar trade were cheaper goods. This year is expected to lower production of sugar, and raw material for sugar production is used as an alternative fuel in some countries. Now in London sugar sold wholesale 447 dollars per tonne at the exchange in New York at 359 dollars. At the beginning of the year the product is marketed in 329 dollars in London and 271 dollars in New York. In Bulgaria, however, the price of sugar fell slightly – in the beginning of 2009 the price of the package one kilograms of sugar was 1.25 euro, and now is 1.18 – 1.20 EUR
When the price of oil tends to rise on raw materials. In exchanges at the end of June, oil is traded at 69 dollars per barrel – or slightly below the maximum levels of 70 – 72 dollars, reached on June 20, but far from those in March, when oil traded below 40 dollars per barrel. However one years before oil was sold at 138 dollars per barrel.

––––––––––––––––– ––––––––––

Finance