We are all reborn, who wants to be the richest man?

Chapter 654 Chapter 653 Soybean Dispute
What is a bull market? A bull market is when prices double.

Does it sound incredible? After all, how many things in history can double in price within a year or a short period of time without falling back?

After hearing this theory, Luo Nianzhong said that you guys are really ruthless in agriculture.

After the World Cup ended, Luo Nianzhong, who watched the entire game, did not return to Hong Kong Island. He still had some things to deal with in the United States.

In the town of Linger, not far from Denver, the capital of Colorado, there is a huge building complex.

This is the new headquarters of Pioneer Seeds, which was put into use just last year.

In the office of Pioneer Seed CEO Rodrigo, while Luo Nianzhong was still exclaiming about the recent soybean prices, Rodrigo did not take it seriously.

“According to our industry’s definition of agriculture, a doubling of prices is considered a true bull market.

In the past eight months or so, the increase in CBOT soybean futures has reached 37%, and the price is now basically stable.

Next is the soybean harvest season in the northern hemisphere. This year's soybean output is relatively normal, and several major producing areas have achieved bumper harvests.

So let alone price growth, it is likely to fall by around 5% to 10%, which cannot be considered a bull market."

Luo Nianzhong didn't know much about agricultural products, and he really didn't expect that only a doubling of futures prices could be considered a bull market.

A 37% increase in eight months, if this were placed in the futures market or other metal futures, this would not be considered a bull market.

I didn’t expect that agriculture is really unique. You guys who sell grain are so ruthless.

"However, there has been a turn for the better regarding the subsidy you mentioned to me on the phone. Tell me the details."

The United States' agricultural subsidy policy has been implemented for many years. Starting next year, a new agricultural subsidy bill will come into effect. However, there is one company that has been clearly targeted, and that is Pioneer Seeds.

Since 1995, the United States has provided farmers with a total subsidy of US$518 billion each year, % of which is spent on staple food such as soybeans, wheat, and corn.

However, there is a problem with this new subsidy bill: there are no subsidies for genetically modified crops.

With the rise of Zipton, various genetically modified seeds have been well promoted. However, the most important and the most sold and planted ones are definitely the genetically modified corn and soybean seeds of Pioneer Seeds.

Relying on its high yield, Pioneer Seeds has captured 40% of the soybean and corn seed market in North America, and its market share is still growing.

However, the four major grain traders and companies such as Monsanto certainly do not want to see the growth of Pioneer Seeds, but sometimes they are helpless.

But the upcoming midterm election results have given them new hope, that is, the elephants are basically certain to take back the House of Representatives, which has been controlled by the donkeys for forty years.

The results of the midterm elections will be announced in November, but judging by the current polls, the Donald Trump has basically no chance.

Now Zipper is the donkey, but the House of Representatives is controlled by the elephant, so many bills require both parties to negotiate and compromise to reach a result.

As one of the biggest supporters of Elephants, the four major grain traders have significant say and influence on Elephants.

Think about when Luo Nian went to China and Brazil, in order to get shares in Pioneer Seeds, he not only took out Monsanto and Bunge, but also blocked the national review of genetically modified soybeans and corn.

But what was the result? Luo Nianzhong turned around and supported La Zipperton.

Originally, Elephant wanted to give Luo Nianzhong a warning, but who could have thought that the old cowboy, who was at the peak of his popularity at the time, would fail in his re-election.

Luo Nianzhong not only saved this agricultural giant, but also approved the cultivation of genetically modified soybeans and corn throughout the United States.

In order to curb the development of Pioneer Seeds, agricultural subsidies have become the last straw for those agricultural giants.

"According to our internal market research, if nothing unexpected happens, the price of soybean futures will most likely continue to rise, and the increase cycle will not be too short, at least more than 20 months."

Luo Nianzhong frowned, but Rodrigo didn't let him ask any more questions.

"rabbit".

"Huh?" Luo Nianzhong didn't understand what this had to do with rabbits.

"The amount of soybeans imported by Rabbit this year will reach about 180 million tons, this growth rate is simply terrifying." "Feed grain?"

"That's right."

Luo Nianzhong overlooked this point. With the Far East's investment in rabbit agriculture, the current rabbit animal husbandry is definitely much better than the same period in the original time and space.

But when there are more livestock, a problem arises, which is the increase in feed grain.

Originally, Rabbit was supposed to start transforming from a soybean exporter to a soybean importer in 1995, but unexpectedly it has happened ahead of schedule.

In 1993, Rabbit became a soybean importer for the first time, importing 29 tons of soybeans that year.

In addition to extracting oil, the soybean meal is also a high-quality feed grain raw material.

I didn’t expect that in just one year, the data on imported soybeans would increase so much, almost reaching 200 million tons.

The output is limited, and if there is suddenly such a big gap here, the price of soybeans will inevitably rise.

"So the four major grain traders are now rushing to buy tons of goods?"

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"That's right. While the news has not yet been announced and the price of soybean futures has not yet gone up, the four major grain traders are now rushing to sign contracts with farmers."

As expected, the price has risen, but I just said that the price will fall. Since Rodrigo asked me to come, it means that an accident is going to happen.

"So what was this accident?"

Rodrigo's expression was a little strange, but he returned to normal in an instant, and said helplessly, "Boss, how long have you not paid attention to the agricultural development in the Far East?"

"Helen No. 1 was successful?" Luo Nianzhong asked in surprise.

Helen No. 1 is the cold-resistant soybean hybridized by the Soybean Research Institute of Helen City. At that time, Luo Nianzhong handed the matter over to Liang Yong and asked him to take it to the Far East for experiments, and then he forgot about it.

Now it seems that there should be results in the Far East.

"After several years of promotion and reclamation of wasteland, the planting area of ​​Helen No. 38 in the Far East has reached hectares this year.

According to the latest data Snape gave me, the yield per acre can reach between 390 kilograms and 410 kilograms."

"38 hectares? So many?"

Hearing this number, Luo Nianzhong was really shocked.

“I didn’t expect that the amount of arable land that can be reclaimed in the Far East is really too large, and it’s all connected.

In the past two years, a large number of people have flowed into the Far East, so the farms there have begun to recruit a large number of people. For them, they have to open up the land sooner or later anyway.

I heard that 17 hectares of land were reclaimed last year alone, and the area of ​​arable land that can be cultivated next year may be even greater."

So that's how it is. The land is vast and there are large agricultural machinery everywhere, so both land reclamation and planting are very convenient.

Soybeans, corn, and wheat will be the three major crops in the Far East in the future. Luo Nianzhong's goal is to reach two million hectares first.

"So we have the ability to crash the market?"

38 hectares, or 570 million mu of land, would be about 400 million tons, assuming a yield of 115 kilograms per mu.

Coupled with the bumper soybean harvest and inventory in Heilongjiang Province, Luo Nianzhong is fully capable of crashing the market.

Don’t you want to block Pioneer Seeds and prevent farmers who grow GMOs from receiving agricultural subsidies?
Okay, then I will overturn the table and everyone should stop playing. Then it will be a competition of financial strength to see who can afford the loss and who has more courage.

Compared with Pioneer Seed, the alliance formed by the four major grain traders is not a one-man show.

(End of this chapter)