American Ranch

Chapter 514 Not the Futures Market
Chen Chen didn't understand the meaning of Zhang Chen's words at all, couldn't understand, didn't understand...

Zhang Chen is right about one thing, the current scale of Yunshan market is not big.This is not big, and it is equivalent to the entire Chinese market...

Monopolizing the woolen pigs in the Yunshan market for a certain month cannot actually raise the price of woolen pigs.And to be clear, Yunshan Market is not a futures market. Although you can buy commodities that will be several months or even more than half a year away, this is not a real futures market...

Even if someone buys out all the contracts for a certain month, if no one takes over when the delivery date comes, then it will enter the spot delivery stage...

As for shorting, the Yunshan market is really not a futures market. The daily prices of all commodities are set by the market and the official market based on the prices of the big market.

Taking June as an example, the number of live pigs to be sold in Yunshan Market in June was 6 million, which means that under normal circumstances, only 200 orders can be issued.The 2 contracts can all be withdrawn... In actual operation, [-] or even [-] contracts or even more contracts can be issued. How many contracts can be issued depends on how many empty orders...

For a short position, if the position cannot be closed after the due date, the consequences will be very serious.Then the position will be forced to liquidate, which is probably similar to the futures market, except that there must be more bullish contracts in the market than bearish contracts...

Chen Chen was confused by Zhang Chen's words: "What will happen to the monopoly market contract when the delivery date comes?"

Zhang Chen looked embarrassed, thought for a while, and shook his head. He still doesn't understand the mechanism here, so he continued to visit around with Chen Chen.

Yunshan Market, it is a market, a market for live animal trading.The difference is that you can buy live animals after 10 months here... Although there is a lot of room for manipulation, this space cannot be carried out in the market... If you can judge the price trend of live animals in the next few months , You can get huge profits in the Yunshan market.

In the short term, the Yunshan market does not have much room for live animal operations, nor does it have no room for operation, it just means that the room for operation is relatively small... What is here is not capital, but a prediction of the future market.

But to enter this market, the threshold is relatively high.

The trading area is relatively deserted.But the market area is very lively there, and many breeding companies are asking about the conditions for admission... To enter the market area on the second floor, the first condition must be the cooperation work of the Yunshan Market Company, and there are no other conditions.

"Hi, Mr. Zhou..." Uncle Chen Mo just got the key to the store in the market area, and when he came out, he saw a meat wholesaler in Shanghai.

"Mr. Chen..." Boss Zhou smiled, and quickly handed Sanbo a cigarette: "This Yunshan market is really tricky, and I can't even understand it. Mr. Chen, I'm here to buy a batch of high-quality mutton for June. It’s Fuyang Festival, can you help me find out, there are too few sheep here in June, and I don’t know which company’s mutton is good.”

"It's easy to say, easy to say..." Sanbo looked around: "Wang Xinghua, come here quickly."

"What's the matter, I'm still busy with the opening of the store." Wang Xinghua trotted over and said.

"This is Boss Zhou from Shanghai. He came here to purchase a batch of high-quality fat sheep. Speaking of fat sheep, doesn't your company have [-] Dorper sheep?"

"The 40 Dorper sheep, if ordered now, cost 1 yuan per kilogram. Those that come out of the building in winter are guaranteed to be fat sheep..." Wang Xinghua said.

"Boss Zhou will order the goods next month for Fuyang Festival."

Wang Xinghua touched his chin: "The average weight of my sheep is about 63 kilograms. They are Dorper sheep with a high meat yield... If they are sold now, they cost 40 yuan per kilogram."

"It's so expensive..." Boss Zhou froze for a moment.

"63 kilograms of Dorper sheep can have a meat yield of 60.00%. If it is less than 40 yuan, it will not be sold..."

There are some sheep ready to go out in June, but they are all Boer goats, and none of them weigh more than 45 kilograms. The meat yield is low, but the price is not cheap...

Boss Zhou just saw the sheep in June in the trading area, and the price is really not low.

Hairy pigs are purchased based on real-time market prices.But sheep, not...

If the meat yield reaches 60.00%, 40 yuan per kilogram is fine.Boss Zhou thought for a few seconds: "Can I go over and have a look."

"of course."

Just about to go out, Chen Chen and his classmates came in: "Uncle San, Mr. Wang."

"Ugh."

"Where is Uncle San going?"

"Let's go to Fuxing Company. This is Boss Zhou... This is my nephew, Chen Chen, CEO of Yunshan Breeding Company."

"Hello Mr. Chen, I've admired your name for a long time, I've admired your name for a long time..." Mr. Zhou smiled and stretched out his hands.

Chen Chen shook hands with him...

"Is Mr. Chen free at noon? I would like to treat you to lunch." Mr. Zhou said again: "I also plan to purchase 120 million fat sheep by the end of the year."

Chen Chen looked at the time and it was almost eleven o'clock: "Okay. Otherwise, let's do it now, there is a restaurant with a good environment on the roof."

Mr. Zhou looked at Uncle Chen Mo, and then at Wang Xinghua: "It's getting late now. How about we go upstairs to have dinner together, and then go to Fuxing Company later..."

Wang Xinghua nodded. He is also very interested in the purchase of 120 million fat sheep...

Wang Xinghua knew that although the scale of Yunshan Farm was large, they seemed unable to provide 120 million fat sheep by the end of the year.

……

On the top floor, Chen Mo and Secretary Ye chatted for a long time, and they also talked about the problems of the Yunshan market.Mainly the trading methods of the Yunshan market, as well as possible problems...

After chatting for a long time, Secretary Ye and the others were about to leave, and Chen Mo sent them to the elevator. It was so nice to meet Chen Chen and the others who came upstairs.

"Oh, Boss Zhou?" Chen Mo had a relationship with Boss Zhou once, and last winter, he also sold sheep...

"Boss Chen." Mr. Zhou laughed, "You still remember me."

Chen Mo smiled and reached out to shake hands with him...

"Boss Zhou is planning to purchase 120 million fat sheep by the end of the year." Chen Chen looked at Mr. Zhou with some inquiring intent.

Chen Mo had a deep impression on this man. Last winter, he was the one who airlifted tens of thousands of live sheep to Shanghai. He was very proud...

"This year we plan to make a big deal." Boss Zhou said with a chuckle, "Where is the restaurant here? Let's talk while eating."

Chen Mo acted as an invitation, and introduced to Boss Zhou: "This is Bai Xiaoou, the boss and CEO of Yunshan Market."

"Oh..." Boss Zhou was taken aback for a moment, and looked at Bai Xiaoou: "Hello, Mr. Bai, my surname is Zhou, and I'm from Shanghai. I have run more than a dozen slaughterhouses around Shanghai, and there are several meat wholesale markets. "

"Hello, hello..." Bai Xiaoou gave Chen Mo a blank look. The owner of Yunshan Market, the owner of this market is Chen Mo...

This market does not look very good now, but it is foreseeable that it will definitely be the largest live animal trading market in China in the future.And it doesn't take long...

(End of this chapter)