met free Chapter 628: Soybean Prices Plummet
Chapter 628: Soybean Prices Plummet
Chapter 628: Soybean Prices Plummet
The United States' move of cutting off China's financial support caught China off guard.
The soybean seeds that were originally sold at a half-price discount suddenly required money.
And the price is ridiculously expensive.
But there is no way, because only the United States has this technology now.
In order to protect its own interests, the United States specially processed those seeds.
There is no way to save seeds for the second crop of soybeans.
Even if they are grown, the quality is uneven.
For the first time, Chinese farmers suffered losses due to technological barriers.
The outrageous prices made the growers hesitate.
At this time, farmers have only two choices: one is to continue to buy seeds at high prices.
One is to switch to growing other crops.
Although the current international soybean prices are very attractive, the planting costs have increased and profits have been compressed.
This year, the scale of soybean planting in China is much smaller than in previous years.
On the other side, the futures market of the United States.
After the four major grain traders spent a considerable price.
The soybean futures prices, which had been falling, finally began to rise again.
This made the soybean company bosses panic again.
Soybean prices are seen falling back.
They also expect to save money.
But now soybean prices have started to rise again, so should we buy it or not?
A group of people got together and discussed for a long time but were unable to reach a unified opinion.
In the end, some people choose to be safe and make a deal right away when the price drops.
Some people also choose to take a gamble and continue to wait and see.
In order to set traps for Chinese companies, the four major grain traders set the transaction penalties very high.
If China unilaterally breaches the contract, it will need to pay a large amount of liquidated damages.
This is also the trap that the four major grain traders dug for China.
Even if these entrepreneurs regret their decision at that time, the high penalty fees can drag them into bankruptcy.
However, the Chinese entrepreneurs did not know this, and in the end they all signed the contracts without knowing what was going on.
The total amount of soybeans in this batch is almost 40 million tons.
It is more than the batch of goods that the four major grain traders took over Wang Jianjun.
If we only calculate based on this transaction, the four major grain traders really don't make any money.
But what they were planning was actually much bigger.
What they want is to use debt to drag these soybean companies into bankruptcy.
At that time, they will be able to acquire these companies and monopolize China's soybean market.
By then it would not be easy to make money.
Wang Jianjun did not intervene much in this matter.
First of all, he can't interfere in this matter alone.
Secondly, his plan was much bigger than this.
In original history, this food war lasted for several years.
During this period, the two sides clashed more than once.
Wang Jianjun wants to attract more foreign capital to join the game and reap the benefits.
Before that, let the bullets fly for a while.
As the spring plowing season begins.
A new round of planting has also begun on the lands of China and the United States.
This year, the world can be said to have had good weather and good harvests.
But under the propaganda of Wall Street financial tycoons and the media controlled by capital.
The agriculture in the United States is in a state of disarray, as if it had suffered a nuclear attack.
The prices in the futures market change every day.
In the end, it rose to three times the usual price.
Those companies that had already signed contracts in advance secretly congratulated themselves for their foresight.
But if they carefully visit the farms in the United States, they will find that the crops in those fields are growing so well.
It can be predicted that the United States will have a bumper harvest of crops this year.
Soon it was September.
At this time, soybeans in the United States also began to be harvested and put on the market.
Because many agricultural products have a good harvest this year.
The market began to see selling pressure.
Soybean prices fell rapidly.
Soybeans, which had originally risen to nearly 6,000 yuan per ton, suddenly fell to 5,000 yuan.
Then there are four thousand.
And those Chinese entrepreneurs who bought U.S. futures were also dumbfounded.
This price is basically the same as the price they originally signed.
The most important thing is that the price dropped from 6,000 to 4,000 in less than a week.
At this rate, it won’t take long for the soybean price to fall below 3.
It is even possible that prices may fall lower.
As long as the price is below the four thousand mark.
Those entrepreneurs basically lost money.
Not only that, the price of soybeans has been falling now.
Then the prices of soybean products in the international market will also fall.
The products produced by these companies are definitely more expensive than those produced abroad due to cost issues.
How can they compete in the market then?
These entrepreneurs are now facing a dilemma: if they buy these soybeans, they will lose money, and if they don't buy them, they will lose even more money.
The difference is dying sooner or later.
All of a sudden, all the Chinese entrepreneurs were worried and crying.
Every day they have to stare at the computer to see whether the price goes up or down.
But to these people’s disappointment, the price of soybeans had fallen to eighteen thousand in less than ten days.
This price is even lower than the 2,000 yuan price in previous years.
This was mainly because the four major grain companies directly took out the 50 million tons of soybeans that they had bought from Wang Jianjun and sold them in the market.
So much soybeans flooded into the market all of a sudden.
The price of soybeans was directly driven down to a very low level.
The appalling price not only caused grief in China.
The farmers in the United States are also in tears.
If farmers in the United States have learned Chinese, they will definitely know a phrase: low grain prices hurt farmers.
This move by the four major grain traders not only caused heavy losses to Chinese entrepreneurs.
It also caused local farmers in the United States to lose all their money.
However, the life and death of these ants at the bottom of the society will not affect the decisions of the capitalists above.
To them, there is no difference between ants in the United States and ants in other countries.
They are just leeks harvested by these capitalists.
The price of soybeans in the United States continued to fall until it reached 1,200 yuan before it finally stopped.
As the decline in soybean prices slowed down, the worries of Chinese entrepreneurs finally died completely.
They did some calculations.
For so much soybeans, the penalty alone would be over 10 billion US dollars.
If they lose this money, they will never be able to recover.
What's more, they have no money at all.
So these entrepreneurs made a decision at the same time.
I won’t pay you back.
But the United States is using the contract to put direct pressure on China.
They also joined forces with some foreign grain traders to stand at the commanding heights of public opinion and condemn these domestic companies.
They also threatened that if China did not pay compensation, international grain traders would never sell soybeans to China again.
This threat is somewhat serious.
After all, China's demand for soybeans is huge at this time, and domestic production is in short supply, so it has to be imported from abroad.
And now the United States is holding back on GMO technology and refuses to give in.
However, China's soybean planting volume has dropped sharply this year.
In addition, some domestic grain traders took advantage of the situation and hoarded soybeans to drive up soybean prices.
It can be said that China’s soybean stocks are now seriously insufficient.
Seeing that it was useless for the Chinese top leaders to mediate.
Those entrepreneurs eventually had no choice but to give up.
It is naturally impossible to lose money.
Then just declare the company bankrupt and do whatever you want.
At worst, I can just become a deadbeat in the future.