Agricultural giant since 1983

Chapter 468: Futures Markets

"Will soybean prices continue to rise?" In the Dalian futures trading market, several soybean speculators were discussing in the VIP room.

"It will definitely rise. Think about it. The Americans have developed such a powerful soybean ethanol production technology, so they will inevitably use a large amount of soybeans to process ethanol, and the market supply of soybeans will drop. These oil mills along the coast are still waiting to make a good fortune from American soybeans! As a result, the supply cannot keep up, so they can only buy soybeans through price increases!" Someone analyzed with reason.

There are also people who are skeptical about this, "Did you forget the fake news released by the US Department of Agriculture before? What the hell, I thought it was true at the time, so I hurriedly bought up, and as a result, I lost hundreds of dollars. If I read it wrong again this time, my family will be wiped out!"

"I also asked someone to check the information on bioethanol production technology. I always felt that the Americans' words were strange. The Americans' technical strength in this area is indeed quite strong, but before that they mainly used corn to produce bioethanol; I wondered, since corn with higher yields and lower prices can be used to produce ethanol, why use soybeans with lower yields and higher prices to produce ethanol? This is not in line with the rules of business."

The tricks of the Americans are actually not difficult to see through. You only need to make a logical judgment to see that there are loopholes in the news. However, the worship of Americans and the desire for money still make many people lose their way. Some people immediately retorted, "Is there any doubt about their old American technology? It must be that the production of ethanol from soybeans is cheaper, more efficient, and can make more money? I also asked, this Green Plains company is the third largest bioethanol production company in the United States. It’s not surprising that if you spend a lot of money, some awesome results will come out! Anyway, I’m optimistic about the continued rise of soybeans!”

"Not only Green Plains, but also ADM, Langier, Valeno Energy, Flinders and other top-ranked bioethanol production companies in the United States have already started building factories in major soybean-producing areas in the United States! These factories cost at least several hundred million dollars in investment. They can't spend hundreds of millions of dollars to tell lies, right?" Someone retorted, and these words sounded reasonable.

However, they did not notice that the locations of these factories are also close to the main corn-producing areas in the United States, and it is also very convenient to directly use corn to produce bioethanol after the factories are completed.

"Buy up, buy up! Look at this situation, the price of soybeans will definitely go back up again. If you want to get back the money you lost before, you must buy up. Anyway, I can’t see any reason to keep the price of soybeans going down! This is where the soybean gap in our country is! Unless there is a sudden increase of millions of tons of new supply, it will definitely continue to rise, and it may even break through the 4000 yuan mark! Let’s add some leverage, and we can earn thousands of dollars! Look, I'm ready to make a big fortune!"

Under his instigation, most of the speculators in this VIP room chose to be bullish, investing a lot of money and leverage to prepare to bet that the price of soybeans would definitely rise.

On the contrary, the traders of Huinong, COFCO, China Grain Storage and other related companies carried out the opposite operation in the market, and invested all the money earned from the soybean price after the lies of the US Department of Agriculture were exposed, betting that the soybean price that had just risen would fall again.

The two forces used money as a weapon to launch a fierce contest in the futures market. The two sides formed a stalemate for a while, but soon the bullish side gained the upper hand. Soybean prices climbed slowly but firmly.

"Hey, if you say that people from COFCO and China Grain Reserves are spending money from the state, you don't feel bad about it! Why are people from Huinong so calm? Just because Li Lei is the richest man in the country, he doesn't care about his family's fortune? But no matter how rich you are, you can't go against the market? Soybean price increases are a foregone conclusion, what are they still betting on?"

"If you knew, then you would be the richest man in the country!" A small number of speculators who bought short were wiping the cold sweat from their foreheads while cheering themselves up, but in fact they didn't know what to do.

After a day’s work, I return to my residence to rest, and I habitually turn on the TV to watch today’s full-time news. Futures traders must pay attention to this, because any policy change will cause fierce turmoil in the futures market, and these turbulences can determine whether they will get rich or go bankrupt.

After the previous program synopsis was broadcast, many people's faces turned pale in an instant, because the announcer suddenly mentioned soybeans that they were most concerned about, "...my country's soybean breeding technology has made a major breakthrough, and millions of acres of salt-alkali-tolerant soybeans have had a bumper harvest."

"Dingling, dingling." Their mobile phones and landlines rang almost at the same time, and they said almost the same thing after they connected, "Have you read the whole news? Does this mean that soybean production will increase?"

"You can see the fart just by mentioning it! Let's wait for the official news!" No one hung up the phone, but no one spoke. Everyone silently waited for the official interior with the microphone, and then kept cursing in their hearts. Why are you broadcasting these messy news? Hurry up and broadcast soybeans!

".Soybean is an important grain, oil and feed crop. my country has a large number of saline-alkali lands with promising agricultural utilization. Cultivating new salt-tolerant soybean varieties is an important new direction to increase my country's soybean production capacity. Recently, my country has made a major breakthrough in this field. Located in the experimental field near Dongfang Farm, strings of golden-colored and full-grained bean pods came into view. Lin Weimin, an expert in soybean breeding, is directing the harvesting team to carry out harvesting work."

"Weighed and measured the yield per mu immediately after harvesting. The soybean yield per mu in the experimental field reached 218.45 kg, creating a new record for saline-alkali-resistant soybeans in my country. According to Lin Weimin, this improved soybean variety has been planted in millions of acres of saline-alkali land across the country, with an average yield of more than 163 kg per mu. In the future, the planting scale of this salt-alkali-resistant soybean will be further expanded. It is expected that the planting area will increase to tens of millions of mu in the future, and the annual increase in soybean production will reach tens of millions of tons. This will undoubtedly greatly increase my country's total soybean production."

"Fuck! This is so fake? When did our country have such awesome technology? It must be bragging! I want to push down the price of soybeans!" Someone yelled, and people always subconsciously deny bad news, and don't believe what they hear is true.

"That's right, it seems that even the Americans don't have this kind of technology, right? With the level of domestic researchers, it's no wonder they can research it!" These people have never doubted the technology of the United States, but when it's their own country's turn, they are questioned day by day.People don't have this demand, okay?

The next day, various newspapers and media immediately followed up and carried out a series of reports. Due to time constraints, there was no way to give too much time to the saline-alkali-tolerant soybean, and the introduction was relatively rough. The newspapers did not have this concern. Such a major scientific breakthrough must be highlighted.

So they published a large picture on the front page. On the top is Lin Weimin's joyful face standing on the edge of a harvested soybean field, picking up the pods. Below is a text introduction, which introduces in detail the research and development process of this salt-resistant soybean, as well as a comprehensive analysis of yield, disease resistance, planting area, economic benefits, and long-term expectations.

Some newspapers also reported that this achievement will apply for the first prize of the National Science and Technology Progress Award, and several authoritative experts in the field of agriculture also came forward to praise this achievement, evaluating it as one of the biggest breakthroughs in China’s agricultural field in recent years, and the possibility of winning the first prize of the National Science and Technology Progress Award is very high.

The government repeatedly endorsed Lin Weimin's salt-alkali-resistant soybeans, and the effect was soon reflected in the futures market. The soybean futures price on the Dalian Futures Exchange took a big dive, and the price fell all the way down.

The logic of this process is very clear. It turns out that soybean prices have risen because the United States has developed soybean ethanol production technology, which will definitely consume a large amount of soybeans, causing a shortage of soybean supply and driving up soybean prices; but now, this gap has been filled by domestic salt-alkali-resistant soybeans. Now that the supply is no longer in short supply, soybean prices should return to normal, so price reductions have become inevitable.

Speculators who previously bet on the rise in soybean prices suffered heavy losses. Huinong, COFCO, and China Grain Reserves not only pushed down soybean prices, but also made a fortune in the futures market, which can be said to kill two birds with one stone.

But there are still some people who don’t give up. They always feel that it is impossible for China to develop such a powerful technology. This must be another bragging of the bricks;

What they thought was completely unreasonable, but what they didn't expect was that this technology was developed a few years ago. Li Lei did not announce it to the public in order to dig holes for the four major grain merchants. He just silently contracted saline-alkali lands all over the country to plant.

"No, we have to find evidence to expose their lies." Those bullish speculators were also in a hurry. They quickly sent people to conduct physical surveys all over the country to see if soybeans were actually planted in the saline-alkaline land mentioned in the newspaper. Since this method can find out that American soybean production has not been reduced, it must also be able to find out the truth about saline-alkali-resistant soybeans, right?
As a result, waves of people appeared around the salt-alkali-resistant soybean planting areas in various places. Among these people were the subordinates of the futures speculators and the intelligence personnel hired by the four major grain merchants.

The futures speculators are only a one-time loss, but the impact on them is long-term, which will inevitably affect their control of Chinese soybeans.

The results disappointed them. Soybeans were indeed grown in the saline-alkaline soils published in the newspaper, and the growth was very good. The pods were almost the same as the soybeans in fertile fields. Pick a pod and peel the beans and pinch them with your fingernails, and the soybean oil immediately appeared. Based on experience, it can be judged immediately that the oil content of this kind of saline-alkali-resistant soybeans is very high.

These news were also fed back to the Internet and the media, and then to the futures market. The price of soybean futures, which was already falling, plunged again. The previous price had dropped from 3800 to 3200. This time, it directly fell below the 3000 mark and approached 2800. In a short period of time, the price of soybeans dropped by as much as 1000 yuan per ton, which made those bullish speculators want to die.

More importantly, it disrupted the plans of the four major grain merchants. If the price of soybeans cannot rise, they will not be able to force those oil mills to rush to buy them. If the oil mills do not rush to buy them, they will have no chance to smash the market!Destroy these small oil mills and buy them at a low price, so as to achieve the opportunity to control domestic soybean crushing capacity and purchase channels.

Now they have a headache. When they launched operations before, no matter what country they targeted, they were almost invincible. Relying on their control of international food transactions and information channels, they can easily control a country's food security. Why is it so difficult this time?
First, when the fake news was released, it was quickly exposed, and when they replaced the old lies with new lies, they responded immediately, offsetting the influence of the lies with good news, so what should we do next?
"Gentlemen, don't worry too much. No matter what they do, the core problem can't be solved. That is, China's soybean production will definitely not be able to meet the market demand in the short term, even if these salt-resistant soybeans are added. After all, it takes time for soybeans to be harvested, and it takes time to plant tens of millions of acres of soybeans! We only need to grasp this point, and we will surely win!" At the meeting of the four major grain merchants, someone comforted.

At the same time, Li Lei is also warning several partners, "This victory in the futures market is just a small tactical victory. It's not time to start celebrating. It's too early for the four major grain merchants to admit defeat. There will definitely be moves in the future, and the offensive will definitely be more fierce! We still have a lot to do!"

Immediately, domestic soybean procurement groups will be formed to go abroad to purchase. The four major grain merchants will definitely not let go of this good opportunity, and the test is yet to come.

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