Homo sapiens

The head-to-head battle over iron ore.

This has put BHP Billiton, Rio Tinto and Vale in a situation of internal and external difficulties.

And the other side.

The four major international grain merchants ABCD also suffered heavy losses at this time.

After Tianzhu reached an agreement with Homo sapiens Company, Homo sapiens Company dumped 37.5 million tons of grain to Tianzhu in less than a month, instantly breaking the trend of skyrocketing international grain prices.

Immediately afterwards, the Republic of Suez imported 5 million tons of prepared flour (non-wheat) from Homo sapiens at the expense of a port on the Red Sea for 50 years of operating rights to a railway.

A group of oil tyrants in West Asia also imported 17 million tons of grain from the Homo sapiens company.

Faced with the massive release of water by Homo sapiens companies and the huge supply of low-priced food, the global food crisis seems to have disappeared all of a sudden.

For low-priced food, ABCD refuses.

After all, their production of soybeans and corn has been severely reduced, and they originally planned to rely on high prices to make a comeback.

Well now, Homo Sapien Company just smashed the market without even giving them a chance to get some blood back. It simply didn’t give them a way to survive.

Bunge's branch in Sydney, kangaroo country.

An emergency meeting is being held at this time.

Branch manager Helen Sachs, as well as marketing department head Lawrence, warehousing department head Jack Smith and others looked at the data list on the projection screen, their expressions were very ugly.

Lawrence pointed to the inventory sector chart: "Currently we have 7.5 million tons of wheat in stock and 2.43 million tons of barley. Barley sales are not a big problem. Many breweries in Germany, Britain, and Western Rome have already sent us inquiry letters. .”

But this so-called good news did not make the manager Helen happy. She gritted her teeth and said:

"The international wheat quotation has dropped to US$330 per ton. We have lost at least US$4 billion, damn Homo sapiens company!"

As the head of the marketing department, Lawrence understands their company's current situation: "We have only two options now. One is to wait for next year to see if the price will rebound; the other is to sell at a reduced price."

"No! I object to waiting for prices to rise next year." Jack Smith said with a serious face: "Do you think Homo sapiens will reduce production next year? No, they will continue to increase production next year, and wheat prices will only be lower next year."

Helen thought for a while and asked: "Jack, why do you think Homo sapiens will increase production next year?"

"Didn't you notice? The agriculture of Mada Island has been controlled by the Homo sapiens company, and the savanna area in the west of Mada Island and the plateau area in the middle are more suitable for growing wheat."

As he spoke, Jack Smith found the natural topographic map of Motor Island on his laptop.

"Look, with the technology and development speed of Homo sapiens, it is estimated that Motor Island can cultivate tens of millions of hectares of wheat fields. This means that the wheat output of Homo sapiens next year will most likely increase by hundreds of millions of tons."

Hearing this number, Helen couldn't sit still: "Hundreds of billions of tons?"

It seems that this number is a bit fanciful, but Helen has to believe it, because the Homo sapiens company has produced 47 million tons of wheat in the two tropical plateau areas of Medan and Shan State Plateau.

Mada Island is also a tropical area, with plateau areas and hot dry grasslands. The developable arable land area is even wider, and the agricultural production potential cannot be underestimated.

What's more, the agricultural technology of Homo Sapiens Company is also very powerful.

When Helen thought of this, she bit her pen in a hurry.

"Manager Helen, it's better to sell these wheat stocks as soon as possible! At 330 US dollars per ton, you can earn at least 30 US dollars. If the price continues to fall..." Jack Smith quickly suggested.

But Lawrence smiled bitterly: "Jack, your idea is too naive. If we take action now, the price of wheat will fall further."

The current price of wheat in the international market can remain at US$330 per ton. That is because ABCD was reluctant to sell in the past, hoping to raise the price. I did not expect that Homo sapiens would be so cruel and lower the price all of a sudden.

If ABCD follows suit now, it will definitely lead to a further decline in international grain prices.

At that time, as long as the price falls below US$300 per ton, it means that their wheat has exceeded the cost price.

This was also the reason why it was difficult for Helen to make up her mind. She estimated that the headquarters was also having a headache about this matter at this time.

The price compared to the Homo sapiens company means that there will be a chain reaction in the market, and they may still lose money when they sell food.

Failure to match the price of Homo sapiens will cause other food importing countries to turn to Homo sapiens, and then their food will have to be stored in warehouses.

Jack Smith also had something to say about continuing to stockpile.

The grain storage warehouses in Kangaroo Country are divided into levels. There are strategic storage warehouses that can be stored for about 5 years, medium-term warehouses that can be stored for about 3 years, and short-term warehouses that can only be stored for 1 year.

Since Kangaroo Country produces a lot of grain, it naturally does not need a large number of strategic warehouses for long-term storage. After all, the construction and maintenance costs of long-term warehouses are relatively high, and capital will certainly not build a large number of long-term warehouses.

Therefore, most of the warehouses in Kangaroo Country are simple short-term warehouses that can only store goods for about one year.

This situation was not a problem in the past. After all, high-quality wheat in Kangaroo Country was often in short supply.

But this time it became a big problem.

7.5 million tons of wheat is not a small amount. If it cannot be sold as soon as possible, there are only two ways to go, either to rot in the warehouse, or to upgrade the warehouse to increase the grain storage time limit of the warehouse to two or three years.

Now Bunge is in a dilemma.

Selling will cause the market price to fall further and eventually turn into a loss-making business.

If you don’t sell it, it will rot, or you’ll have to spend money to upgrade and renovate the warehouse.

No matter which choice it is, it is not a good choice.

Jack Smith, who was helpless, asked with troubled eyes: "Lawrence, what can you do?"

Lawrence spread his hands and looked very helpless: "I have no choice. The key now is that the Homo sapiens company dumps food at low prices, and we are forced into a corner."

Jack Smith racked his brains, and suddenly he thought of an idea: "Then can we go to the WTO and ask Homo sapiens companies to stop low-price dumping?"

At this, Lawrence shook his head helplessly: "Homo sapiens is not a member of the WTO. They do not need to abide by WTO trade rules. What's more, Homo sapiens has always been domineering, and they don't care what the WTO thinks."

Helen bit her pen and made a tooth mark, and sighed: "Huh... let the headquarters decide! There is nothing we can do."

Lawrence nodded: "This kind of matter should really be handed over to the headquarters. We have no way to make a decision now."

Soon Helen wrote the report.

ADM, Cargill, and Louis Dreyfus, which were also suppressed by Homo sapiens, also had high grain inventories due to their previous reluctance to sell.

Looking around, there are few buyers in the world who can eat their grain stocks.

Of course, if they sell it at a low price, the Far East will definitely import a lot.

The problem is that ABCD is unwilling to accept it now!

Once they sell their stored grain at a low price, they will suffer a lot of losses, which will be more uncomfortable than killing them.

It could have been a profit of tens of billions of dollars, but now it is not only impossible to make money, but also very likely to suffer losses. Not to mention ABCD cannot accept it, no one can tolerate it.

But time was not on their side.

The longer time passes now, the more detrimental it will be to ABCD.

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