Chapter 65: 64, the futures market is more vigorous than the entity! (2 more updates) !
Translator: 549690339 I
Lin Mo, realizing something was amiss, furrowed his brows and flipped over the white paper in his hands, writing down two sets of digits in the blank space.
3.75 yuan.
11.59 yuan.
One was the wholesale price of ginger shoots found online.
The other was the highest sale price of ginger shoots, according to the Intelligence System.
Then, Lin Mo wrote down the figure of 10 million next to them.
This was the total capital he planned on using to purchase ginger shoots.
Dividing the total amount of money by the price per jin of ginger shoots, the result was about 2,666,666 jin, which equated to 1,333 tons.
“Hiss—
Seeing his calculation, Lin Mo couldn’t help but gasp in shock.
Over 1,300 tons?
Damn!
That was a huge quantity!
Let alone whether it was possible to purchase such a large amount, even if he really managed to get hold of so many ginger shoots, the Demon Capital’s market would definitely not be able to absorb it all at once.
According to the information Lin Mo found online, the entire Grand Xia Country’s daily ginger consumption was only around 900 tons, and this included the regular consumption of dried ginger, ginger chunks, pickled ginger, ginger oil, ginger powder, ginger candy, and other deep-processed products.
Just the fresh ginger shoot, this small variety, would not reach such a large volume.
“This is a big problem! Even if I really could get so many ginger shoots, the others are not fools; in fact, it’s quite the contrary, those meticulous vegetable vendors are among the smartest people in the market.”
“If I were to hastily invest so much capital, the merchants would definitely notice and seize the chance to raise prices. There might even be those with special channels who could dump the ginger shoots on the market just after prices start to hike, beating me to it.”
“This scenario could totally happen, and by that time I could be facing a total loss.”
Only now did Lin Mo realize that he had thought of doing business as too simple.
As if he was the only person in the world doing business, with no enemies or competitors.
But that was not the case at all.
Even though he had the most critical key information, there was still no way to make a huge profit by stockpiling ginger shoots in one go.
What should he do?
He couldn’t just give up such a good opportunity, could he?
This was Lin Mo’s first time doing business, and with the help of the Intelligence System, there would definitely be more business opportunities in the future, so Lin Mo didn’t want to give up so easily.
He needed to learn to solve these kinds of problems.
At this moment,
Li Jinwen, having finished bathing, came out of the washroom. Seeing Lin Mo’s furrowed brow, she walked over, drying her hair, and asked, “What’s wrong, husband? You look worried, what are you thinking about?”
She naturally positioned herself behind Lin Mo, put the towel aside, and began to massage his shoulders.
Feeling the comfort in his shoulders, Lin Mo snapped out of his deep thoughts, rubbed his eyes, and touched his wife’s hand, turning his head to gently ask, “Where’s Xiaoxiao?”
“She’s already asleep in the room.”
Li Jinwen, curious about the jumbled numbers on the paper, asked softly, “What are you calculating here?”
Calculate what?
He couldn’t tell his wife about the matter involving over ten million yuan just yet.
But other matters, Lin Mo felt there was no need to hide.
He smiled and said frankly, “I’m thinking about a problem. If the price of ginger shoots skyrockets, how can we make more money besides hoarding ginger?”
Apart from hoarding ginger, how else to make money?
Upon hearing the question, Li Jinwen immediately grinned and said, “Husband, did you forget about the legendary figure we all discussed in our senior year?” The legendary figure?
Lin Mo asked in bewilderment, “Who? I really forgot…”
“How could you forget that? Weren’t you often saying back then that you were bound to be more formidable than him?” said Li Jinwen, resting her chin on Lin Mo’s shoulder jokingly. She didn’t tease him further and straightforwardly said, “It’s that legendary ‘Beggar of the North,’ Fu Haitang.”
Fu Haitang!
Upon hearing this name, a loud boom suddenly erupted in Lin Mo’s mind.
All the tangled problems vanished in that moment!
Fu Haitang was born in 1967 to a farming family and was known as the “farmer philosopher.” In his youth, he had raised pigs, grown cotton, and other crops such as garlic. However, what truly made him famous throughout the country was the garlic futures incident in 2009.
At that time, the price of garlic plummeted. The production cost was 1.2 yuan per jin, and the storage fee was 0.15 yuan per jin, but the most expensive varieties of garlic could only be sold for 0.17 yuan per jin, resulting in significant losses for garlic farmers and traders and a reduction in planting area.
Growers realized that the price of garlic would definitely continue to fall, so they chose to plant other crops instead.
With less garlic grown, production decreased, but the demand for garlic remained the same.
Seizing this opportunity, Fu Haitang invested 50,000 yuan into the futures market, heavily betting on garlic. Following a series of crafty maneuvers, he made a profit of over 6 million yuan, which shook the national futures market at that time and became one of the favorite case studies among university agriculture professors.
[The foundation of a bull market has two conditions: one is a serious blow to producers; the other is a sharp reduction in inventory.]
Almost no one who studied agriculture after 2010 could be unaware of Fu Haitang’s famous saying.
“Yes, that’s it! I’ve been so foolish! Why was I so fixated on physical commodity trading?”
“The futures market is where I really should shine!”
With this thought, Lin Mo hugged Li Jinwen tightly and kissed her passionately, exclaiming excitedly, “Wife, my dear wife! You are truly my lucky star!”
“Ah, keep your voice down, or you’ll wake Xiaoxiao!” Li Jinwen’s cheeks flushed as she turned to glance at their daughter’s room.
“No worries, we’ll buy a soundproof house in the future, so we won’t have to worry about her overhearing!” Lin Mo kissed his wife again and hurriedly took out his phone to download the Xingzhou Commodity Futures Exchange APP, which was CITIC Construction Futures.
In terms of the scale of futures platforms, undeniably, the largest in the country was the Demon Capital Futures Exchange, where Lin Mo resided.
But each field has its specialization,
The main markets of the Demon Capital Futures Exchange were non-ferrous metals, precious metals, ferrous metals, energy and chemicals, shipping indices, options, and other such sophisticated segments.
When it comes to agricultural product futures, the Xingzhou Commodity Futures Exchange in Henan Province and the electronic board in Qilu Province are the names that come to mind.
However, how should I put it…
Qilu Province has overreached; nine out of ten electronic boards there are illegal.
To say one could earn a lot is one thing, but sometimes just getting your principal back is already quite impressive.
“It seems you’ve already got a plan. Go ahead with your work. I’ll also calculate how much the lottery shop’s renovation will cost!”
Seeing Lin Mo earnestly researching, Li Jinwen smiled slightly, not wanting to interrupt. She took a few sheets of paper and a pen and sat opposite Lin Mo, beginning to calculate the renovation costs and subsequent procedures for the lottery shop.
With just a small lamp on, the dimly lit living room saw,
Two people sitting opposite each other, each busy with their own tasks, occasionally looking up and catching each other’s eyes as if by telepathy. The atmosphere was very harmonious, warm, and happy.
After downloading the futures software, Lin Mo couldn’t wait to enter the ginger category and looked at the price.
[5.21 yuan.]
Futures differ from stocks.
There are no bear markets in futures; you can short or go long. If you bet correctly, you can make money even if the price of the commodity falls.
Moreover, futures offer To trading; you can open and close positions multiple times within the trading day, providing opportunities for profit from price differences while also facilitating risk control. If you notice a negative trend, you can close your position in time to minimize losses.
If he could master the patterns of futures trading, Lin Mo could earn money by buying futures on rising price information and make money on dropping price information as well.
“The current price of ginger shoots is 5.21 yuan, and the highest selling price can go up to 11.59 yuan…”
“This means that if I buy 10 million yuan worth of ginger futures and sell at the right time, after all fees, I could make a profit of nearly 20 million yuan.” Futures trading is tax-free.
This is quite normal; even if you lose everything, the state won’t compensate you a single yuan.
It’s like a battlefield, entirely reliant on one’s own strength.
“Should I buy them all in one go?”
After some thought, Lin Mo decided to invest about 8 million yuan in ginger futures and use the remaining 2 million to buy ginger shoots on the wholesale market.
Using both approaches, he’d see which was more profitable and better suited for him!
[Second update, asking for monthly tickets, more updates coming—]