The reason why the soybean purchasing group in the previous life suffered a disastrous defeat and was completely wiped out was that in addition to trusting America, they also suffered from the loss of information.
Being born in an unfamiliar place and being surrounded by the American media is like a fight between two adults and two adults. The Western media only allows the two adults to complain and does not allow the older adults to open up. It was the same at that time——
You are not allowed to shout "Don't rush to buy", you must shout "Buy quickly, buy quickly! The price will soon rise to 5,000 yuan per ton"!
The purchase only takes three or four days, so there is no time to investigate and think. The shorter the time, the greater the advantage of information asymmetry. As futures prices rise, don't panic and sign the order in a daze.
But now, as soon as I get off the plane, there is information that Xu Xin and others have specially collected and sorted out. For example, three of the four major grain merchants have been listed, and the annual reports are disclosed, which is clear at a glance.
At this moment, the phone of Trisolaris Fund was ringing non-stop.
"I'm Xu Xin, ah, I'm Mr. Ning from COFCO."
Xu Xin hurriedly answered the phone, "What information? Of course you bought it from a consulting company. Our fund is doing soybean futures. Yes, most hedge funds on Wall Street have a copy."
While he was talking, he cast his eyes towards the sofa and saw Lu Fei, looking like he had nothing to do with himself, with his legs crossed, dealing with a pile of documents and bills.
"Mr. Lu? Mr. Lu is not in the United States."
Xu Xin opened her eyes and told lies: "After I saw this information, I had someone send it to me for reference. The data is absolutely reliable!"
There was just a click and the beep of the hung up phone.
"Oh my God, I'm almost turning into a repeater."
Xu Xin answered countless calls and couldn't help but sigh.
"Sister Xin, the essence of human beings is actually a repeater."
Lu Fei raised his lips and glanced at the patents that Logic had recently acquired and the projects he had cooperated with the university. Each stroke of his pen cost tens of millions of dollars.
All the free money goes into research and development.
"Stop talking sarcastically."
Xu Xin rolled her eyes: "But as for achieving this step? We need to let the people on Wall Street and ABCD grain merchants know that we are the one who disrupted the situation, especially you..."
"Spoiler?"
Lu Fei shrugged, "Foreigners just want to eat three to four million tons and an arm to keep us half dead. It would be better for us to just stick our heads over and die."
Xu Xin shook her head and sighed, "That's right. I don't know if you can fool me if you wrap your arms around me."
As soon as he finished speaking, the Nokia on the desktop buzzed.
Lu Fei glanced at the number and noted it was "Minister of Commerce". He didn't dare to answer the call carelessly, and just said:
“Good things your fund has done!”
"Minister, what's the good thing?"
Lu Fei pretended to be innocent with a confused tone.
"Stop pretending to be confused with me."
The Minister of Commerce said sternly: "This will put aside the war years and shake the morale of the military, which will lead to beheading, but if you want to collect intelligence, your merits will be offset by the merits and demerits."
"..."
The corners of Lu Fei's mouth twitched and he was speechless for a moment.
"The leader wants to speak to you personally."
After the Minister of Commerce finished speaking, his voice immediately changed into a gentle and elegant tone, like a spring breeze.
"Xiao Lu, the information you sent was very timely."
"As long as you're not angry."
"Why are you angry? You have done a good thing. Indeed, what you said at the meeting has gradually come true. The water inside is very deep."
"Leader, I'm just afraid of the worst outcome."
Lu Fei said without reservation that if the purchasing group was wiped out this time, international grain merchants would aggressively invade the processing industry and control purchasing channels and pricing power.
Then imported soybeans occupied the market, and domestic soybean production decreased significantly, eventually monopolizing the soybean and soybean meal markets.
The other end of the phone was silent for a long time before speaking again:
"Tell me, what do you think?"
"Just a little bit of half-baked advice."
Lu Fei came clean and divided the purchasing group into two. This time the purchasing volume was reduced to about half, buying three to four million tons. The rest was to wait for the futures market price to correct, and then make another counterattack to even out the cost of this high level.
"Of course, it's purely voluntary and the company operates independently."
Xu Xin held her breath and looked at him chatting humbly for a while. When she put down the phone, she finally couldn't hold it anymore:
"how is it going?"
"It's up to them to try their best."
Lu Fei wiped his face.
Xu Xin said in surprise: "What should we do now? If we really persuade them, will we still take the short position?"
"do it!"
Lu Fei raised his lips: "If you can't make a short order of 8 million tons, it won't be a problem to make a 3 million tons one."
………
The next day, February 25th.
In the carefully laid out media war, even if China's squeeze companies made up for their shortcomings in information, they still couldn't get rid of the panic and increased their purchasing efforts.
But the quantity is no more, no less, exactly 2 million tons.
Soybean prices on the Chicago Board of Trade rose from 1,010 cents to 1,025 cents.
On February 26, soybean futures rose another 12 cents.
But the purchasing group only secured 1.5 million tons.
Come Friday, February 27th.
On the last day before the market closed, and also the last day for the purchasing group to officially announce purchases, soybean futures prices reached a six-year high on the Chicago Board of Trade.
Equivalent to RMB, 4,300 yuan per ton.
Chinese oil companies couldn't help but panic and bought another 500,000 tons of soybean forward contracts. For three days, they bought a total of 4 million tons.
“Bravo! Goldman Sachs’ first big deal of the new year.”
Paulson thought about the profits brought by short selling, and the corners of his mouth raised. He went to the wine cabinet and took out whiskey and poured two glasses.
"cheers!"
"cheers."
David Solomon looked angry and forced a smile.
"David, what's wrong with you? Today is a day worth celebrating."
Paulson grinned, "The Chinese delegation is so cute that they don't do any hedging. It would be better to put the money directly into our pockets to save trouble, haha!"
"But it's only 4 million tons, only 4 million tons!"
David Solomon said sullenly, "This shouldn't be like this. They should purchase more, 5 million tons, 6 million tons, or even seven or eight million tons."
"Four million tons has exceeded expectations. You must know that internal news said that the Chinese only purchased 3 million tons."
"No! China plans to purchase more than 7 million tons this time!"
"Where did you get the news? Is the news accurate?"
"Very prepared! Kerry's partner, Wilmar Group, founded 'Arowana' in China. The latest information it has obtained is the amount of this purchase."
"But now, why has it become 4 million tons?"
"I don't know either, but I'm sure someone must be causing trouble! We've lost so much money!"
“But whether it’s 7 million tons or 4 million tons, it’s enough to make China’s soybean oil merchants hemorrhage.”
Paulson took a sip of wine: "This is the result that the four major grain merchants of ABCD want."
"But wouldn't it be better if it was 7 million tons?"
David Solomon smacked his lips: "We can earn more and provide funds to our old customers. Huaxia Soybean Enterprises, which is suffering huge losses, cannot refuse new funds and will definitely accept their shares."
"Compared with this, I am more concerned about how to snipe the Chinese mainland?" Paulson was full of expectations.
"The short-selling plan may be ruined. According to the news from Old Block, Huaxia Continental will not go long and will switch to a short position."
David Solomon looked embarrassed. After all, he was the one who suggested short selling Lu Fei on a whim, but unexpectedly, Lu Fei seemed to have predicted his prediction.
"What?!"
Paulson's smile froze, "How did Chinaland know it would fall! Doesn't he understand futures?"
……………
The Huaxia Soybean Purchasing Group had just left, less than a week after collecting 4 million tons of goods, and took advantage of the futures delivery period to make a series of back-up moves.
The U.S. Department of Agriculture suddenly turned its back and clarified that the sharp reduction in soybean production was fake news. On the contrary, soybean production has set a new record, and there is huge potential for increased production this year.
Immediately afterwards, soybean inventories were raised. Such negative news caused Wall Street hedge funds to short soybean futures.
In just one day, the price of soybeans in the international market fell from 4,300 yuan per ton to below the 4,200 yuan mark.
Throughout the Chicago Board of Trade, panic spread rapidly, as if there were already signs of an avalanche.
When the news spread to China, the grain and oil industry was instantly shaken.
"It's down! Oh my god, Mr. Lu is really right."
Tian Renli was secretly glad that he had listened to Mr. Lu's words, and the others who followed his advice and either did hedging or quit the purchasing group all thanked them on the phone.
"Mr. Tian, thank you, thank you so much."
The boss spoke with a southern Henan accent: "Thanks to you, otherwise it would be over, all over! You saved the life of Henan Cereals and Oils!"
"Don't thank me for this. If you want to thank me, thank Mr. Lu. The hedging is his skill. I'm just a sounding board."
Tian Renli is not greedy for credit, and the great credit undoubtedly belongs to Lu Fei. No matter how many thank you calls he gets, it will still be the same.
When it came to talking about Lu Fei, the bosses had mixed emotions.
For example, Guancheng Grain and Oil Enterprises feel ashamed and annoyed.
"Thank you, Mr. Lu! I regret that I refuted him at the meeting. If I had listened to him earlier and quit the purchasing group earlier, this kind of thing would not have happened."
Another example is COFCO, which is helpless but fortunate.
It is not only a state-owned enterprise, but also a central enterprise. It is impossible to withdraw from the purchasing group. It even has purchasing targets and tasks, but thank God, because of Mr. Lu, the original purchasing volume has been reduced by half.
Although the price is high, the other half can wait until the price falls back to two or three thousand, and the balance will be evened out. It will only hurt the muscles and bones, but it will not be a disaster.
If there is a life left after a catastrophe, one will naturally suffer the catastrophe of life and death.
"Mr. Tian, please help me! I really can't afford the compensation, otherwise I will have to break the contract and give up the deposit..."
"Brother, I'm ready to be dismissed, but Dalian Cereals and Oils can't fail. Think of a way, think of a way!"
"..."
There are 14 houses, large and small.
It was all because I didn't listen to Mr. Lu's advice twice, bought high-priced soybeans, and was stuck on the top of the mountain, unable to get down.
It’s just one step away from filing for bankruptcy.
Tian Renli had no idea what to do and only gave one answer——
Don't come looking for me. Go and ask for Mr. Lu!
(End of chapter)
