Chapter 105: A Newspaper Draws Attention The tall and thin man also laughed when he heard this. "That's good news indeed."For soybean crushing companies, the cost of imported soybeans is much lower than that of domestic soybeans. Businessmen are profit-driven and will certainly be willing to use imported genetically modified soybeans. What's more, for a company like theirs that is controlled by a large international grain trader, if import restrictions are relaxed, they will have a lot of room for manipulation, both in the soybean futures market and the spot market. The news that domestic soybean imports will be completely liberalized spread like wildfire. All of a sudden, many stakeholders shouted that spring had come. On the other hand, Guo Yang also collected a large amount of information through domestic and foreign channels. As a key factor in triggering the "soybean storm", the market information released by the US Department of Agriculture has been widely criticized, but while domestic companies complain about its manipulation of data, they have to believe it. Because there is a lack of relevant public information services in the country. Moreover, based on the information he collected, Guo Yang added a lot of personal information that he knew from his previous life. The past and present of the four major grain traders, and how they use grain as a weapon to stir up trouble around the world.
I then contacted the relevant departments, hoping to be of some help to the country, but unexpectedly learned that the import restrictions on soybeans had been lifted. The ministry was also helpless. Previously, the country had issued a soybean import restriction ban on six international grain traders including Bunge, Cargill, and Louis Dreyfus. But then several soybean exporting countries responded fiercely, and a war without gunpowder began quietly and silently. Then it ended hastily. The only regulatory measure for soybean imports has been relaxed, and many companies are ready to form groups to go abroad to purchase soybeans. In order to avoid this tragedy, Guo Yang spoke out. But it is like an ant trying to shake a tree. “Huaxia needs to import soybeans because Huaxia soybeans lack competitiveness.” “The oil extraction rate of domestic soybeans is lower than that of imported soybeans.” Stakeholders are shouting slogans, but is this really the case? In terms of planting costs, because labor and fertilizer prices have not skyrocketed, domestic production costs are more than 40% lower than American soybeans. But it is an objective fact that domestic soybean prices are higher than imported soybeans, which is mainly due to the limitations of transportation conditions. This results in untimely supply of raw materials from soybean producing areas such as the Northeast to coastal processing companies, and high transportation costs. Correspondingly, the four major grain traders control the progress of global grain transportation. Take Cargill, for example. The company controls the world's largest surface transport fleet. It has a dry bulk transport fleet of more than 500 ships, loading cargo at nearly 1000 ports around the world, with an annual transport volume of more than 20 billion tons. Although American soybeans need to cross the Pacific Ocean, the timeliness of supply and transportation costs are far better than domestic ones. Imported soybeans are cheap, and faced with the huge profits brought by low-priced raw materials, my country's oil and fat industry has expanded blindly and irrationally. At that time, domestic soybean processing was a well-deserved highly profitable industry.
There are more than 1000 oil and fat processing companies, and their main raw material is domestic soybeans, which can bring a profit of 4000 yuan per ton. And if imported soybeans are used as raw materials, the profits will only be higher. You should know that the average house price in Shanghai during the same period was only 3000 yuan per square meter. As a result, old factories were expanded, new factories emerged, annual production capacity increased rapidly, and then there was serious overcapacity. The dependence on imported soybeans is also increasing. The profits from domestic soybean cultivation are also getting lower and lower, and with the increase in labor and fertilizer costs, the advantage of soybean production costs will no longer exist. This seems to be a dead end. "Let them die, then we can acquire and merge them to save these companies from danger." "What the four major grain traders can do, we can do too." Guo Yang was talking to himself, which made Xie Shijie, who had been following him, a little confused. He felt that his boss was acting weird lately. "Boss, what are you talking about?" "Get ready to work hard. You guys are not satisfied with the acquisitions you made recently. You will be busy in the coming year." "what?" "I'm learning more about the soybean crushing industry recently, which may involve acquisitions." Xie Shijie was even more confused. He was not worried about the money. After learning about the financial situation of Weiguang Company, he became more motivated. But I understand nothing about the soybean crushing industry! Guo Yang is not worried about Xie Shijie's ability. As a top student in economics and management, Xie Shijie has a strong learning ability. The key company has the ability to tolerate mistakes! Companies also need young people they train themselves, but this is far from enough. The management of several major companies is still relatively rough, and he is basically the only one who has the final say. There is not even the prototype of group management yet. Internal integration of the company also needs to be put on the agenda, but that is easier said than done. He urgently needs to bring in a strong management talent who understands financial services, strategic management, marketing, global mergers and acquisitions, supply scheduling, retail business and professional academics! But the most important thing now is to get through this "soybean crisis". For him who knew the general trend of history, this was a feast for the eyes. It is an excellent time to accumulate and expand capital. In this siege on China's soybean industry, in addition to the four major grain traders stirring up trouble, what is not well known are the three major speculators in the international market. Goldman Sachs, Morgan Stanley and Barclays. It was reported that "the financial crisis has pushed up global food prices, and Goldman Sachs is the number one culprit of the food crisis." These international capitals not only instigated the . Department of Agriculture to release false information, but also invested huge amounts of capital in this siege. International funds' speculative capital in the agricultural futures market is about US$2000 billion. Since the end of 2003, funds from the four major grain traders and international investment funds have poured into the soybean futures market, accounting for more than percent.
Soybean futures prices are entering a period of rapid growth! The hunt begins. Under such circumstances, the capital controlled by Guo Yang: Hong Kong Island Company and Weiguang Company totaled about million US dollars, which attracted much less attention in the soybean futures market. There is every opportunity to make huge profits in the international soybean futures market! Guo Yang also launched a massive attack at the right time. We started to gradually build up long positions in the futures market early on, and the margin ratio was no longer conservative. Pull the lever! When the four major grain traders and international investment funds pushed up futures, the capital controlled by Guo Yang had already built up 30% to 40% of the positions. Subsequently, it worked together with international grain traders and capital to push up soybean futures prices. The price of soybeans in the spot market also rose sharply, and soon reached a high of nearly 4000 yuan per ton. The country’s large soybean crushing companies have long been unable to sit still and have been clamoring to go abroad to purchase soybeans. It seems that a drama of chasing highs and selling lows is about to unfold. at this time. An article was published on the front page of the Grain and Oil Market News. This newspaper is quite influential in the industry, and almost all the competent industry departments and more than 90 large soybean processing companies in the country have subscriptions. I saw a big, bold title printed on the top. Food War: The Hidden Weapon Behind the Pillar of Hegemony! As soon as the article was published, it attracted widespread attention. (End of this chapter)