Homo sapiens.

Chapter 151
20, April 7.

The night when large-scale downy mildew appeared in North American soybeans.

Britain.

London Stock Exchange.

David looked at the market, and the prices of soybeans and soybean meal took off instantly. His hands were shaking. He no longer dared to place short orders:

"Quick, throw away all empty orders..."

"That's too late!"

In fact, ABCD has secretly notified David and others, but they were still one step too late. The bullish forces in the market are attacking today as if a dam has burst.

David, who was still answering the phone just now, watched the prices of soybean and soybean meal futures on the market skyrocket.

In less than 10 minutes, the price surged 2.3 times, and the upward trend has not stopped.

After a moment of astonishment, other financial investment institutions and speculators frantically used various relationships to inquire about news.

Soon, the news that North American soybeans might be out of harvest this year was known by many organizations.

All of a sudden, these financial institutions and investors seem to smell bloody sharks and piranhas, and they are frantically buying more soybean and soybean meal futures, and even the futures prices of corn, wheat, and rice have skyrocketed.

It seems that ABCD, as a major international grain merchant, the soaring soybean and grain prices this time seems to be very beneficial to them.

But in fact, ABCD was about to vomit blood at this time.

Because they broke their position.

Because there are too many high-leverage short positions in soybean and soybean meal futures, the bottom line for their price fluctuations is that soybeans can rise by up to 15%. Now soybean futures prices have soared to nearly 300%.

They don't liquidate?Who liquidated?
Within ten minutes, ABCD lost tens of billions of dollars in the international futures market.

Among them, Cargill and Bunge lost the most.

What's even more frightening is that the delivery period of soybean futures will soon expire next month. There are currently 8 million tons of futures orders in the futures market that expire in August and September.

No matter how the futures price fluctuates, ABCD must have soybeans and soybean meal delivered at that time.

But the problem is that North American soybeans are now one of the regions with the largest production in the world, and the harvest suddenly disappeared. South American soybeans and Lucia soybeans have been booked by Chinese buyers.

At that time, if ABCD fails to hand over 3372 million tons of soybeans and soybean meal, it will face default.

For example, Luzon purchased 630 million tons of soybeans from ABCD through the channels of Xiangjiang and Sing Tao, preparing to promote the diversification of edible oil and feed channels.

In this transaction, a maximum liquidated damages of 1.3 times was set. At that time, the contract was $330 per ton, and the total transaction value of the contract was $20.79 billion.

Moreover, this is a long-term contract, with an annual supply of 630 million tons, for a total of 5 years.

If the contract is breached, ABCD will need to pay nearly $6 million in compensation this year.

In addition to this, Homo sapiens also used several listed companies in Europe to place tens of millions of tons of orders to ABCD on the grounds of developing artificial meat, plant protein, feed and biofuels.

In other words, if ABCD cannot find enough soybean spot this time, they will not be able to make any profit in the soybean spot market.

Financial markets are very real.

A group of international investment giants don't care about the bleeding of ABCD. They only care about their own pockets, and they even want ABCD to continue to bleed.

The impact of the liquidation is that the futures prices of soybeans and grains soared.

At the end of the day.

国际期货市场上，各种大宗农业商品的涨幅非常夸张，大豆涨幅327%、豆粕涨幅272%、玉米涨幅127%、小麦涨幅108.3%、大米涨幅105.7%。

In the futures market of ABCD, although the reverse operation has reduced some losses, it still lost more than 135 billion dollars that day.

David's Louis Dreyfus company lost 18 billion dollars, and he and the entire futures trading department employees fell into silence.

Too tragic.

Louis Dreyfus's profit this year is estimated to be only a billion dollars, and today this year's profit has been evaporated all at once.

"The company has already held a board meeting, so everyone should be mentally prepared!" David said dejectedly.

……

If it is said that Louis Dreyfus has suffered heavy losses.

Then ADM, Cargill, and Bunge are hurt.

After all, Louis Dreyfus has no soybean industry in North America, but was slaughtered in the financial market.

However, ADM, Cargill, and Bunge have a large number of soybean farms, oil mills, feed mills, and plant protein extraction plants in North America.

The executives and boards of directors of the three companies held emergency meetings overnight.

Among them, Cargill, which is not listed, is better, at least it does not need to explain the situation to stock market investors, but they also suffered heavy losses.

Cargill’s chairman, William Wallace Cargill Jr., looked at the president, Wade, his eyes were on fire: “Tell me how much money I lost?”

"4...43 billion..." Vader's voice was trembling.

boom!Little William slammed his fist on the oak table, his face looked like a piece of pork liver, and he roared frantically, "43 billion! What is the company's profit this year? Also, the contract expires in August and September. How do you plan to solve it?"

"Chairman, I can't help it. No one thought that such a severe soybean downy mildew would suddenly break out." Wade obviously didn't want to take the blame.

Little William blushed even more: "I want to listen to how you solve the problem and reduce losses, not just your excuses, understand?"

All the executives were like ostriches, looking down at the documents in their hands, and no one had any thoughts to speak out.

Those present are not fools. With such a big loss and production gap, they don't know magic. Even if they replant now, it's too late.

Cargill's soybean inventory in North America is 1537 million tons, and in South America is 1239 million tons. These are to be delivered to customers, or the company's factories themselves need them.

Of course, there is another way now, which is to snap up soybeans from Eastern Europe and Lucia, and use this part of the soybeans to deliver to customers.

It's just that the spot price of soybeans has exceeded 530 US dollars per ton. Purchasing at this price is better than paying liquidated damages directly.

This is also one of the reasons why the executives present did not dare to speak out. The problem was obvious, either purchasing soybeans from other regions to fill the gap, or directly breaching the contract to compensate customers.

Little William felt tired.

Suddenly, President Wade thought of a way: "Chairman, maybe we can make up for it from other places."

"What way?" Little William asked quickly.

Wade explained: "Do you still remember the food war in Luzon? I estimate that Luzon's grain inventory will not exceed 500 million tons. Coupled with the continuous pressure in these two quarters, their domestic rice and corn planting area has decreased. A lot, and now I feel like I can attack early."

"Luzon? Food? Isn't it planned to start next year?" Little William obviously knew the details of the plan.

Wade shook his head: "Next year is too late, and the international rice price is out of control now. Although the effect of starting early will be worse, but we have nothing to do now!"

After thinking for a while, Little William also discovered the problem.

In order to suppress international rice prices, ABCD has maintained a low-price dumping strategy before, but now the thunderstorm of soybeans has caused a chain reaction on the entire grain market.

After all, soybeans are an important raw material for edible oil and feed. Once the price soars, buyers will naturally look for alternative products.

This in turn drives up the prices of rapeseed oil, sunflower oil, palm oil, corn, wheat and rice.

This invisibly undermines ABCD's low-price rice strategy.

If it is not activated now, as long as Luzon gives a little guidance, its rice planting area will increase again, causing the previous layout to be wasted.

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(End of this chapter)