Homo sapiens.

Chapter 333 The Wave ([-])

The head-to-head battle of the iron ore wars.

Let BHP Billiton, Rio Tinto, and Vale fall into a situation of internal and external difficulties.

And the other side.

The four major international grain merchants, ABCD, also suffered heavy losses at this time.

After Tianzhu and Homo sapiens reached an agreement, Homo sapiens dumped 3750 million tons of grain to Tianzhu in less than a month, instantly breaking the trend of skyrocketing international grain prices.

Immediately afterwards, Egypt imported 50 million tons of prepared flour (not wheat) from Homo sapiens at the cost of a 500-year operating right of a railway at a port on the Red Sea.

All the oil tyrants in West Asia have also imported 1700 million tons of grain from Homo sapiens.

In the face of the large-scale release of water by Homo sapiens and the huge supply of low-priced food, the global food crisis seems to have disappeared all of a sudden.

For low-priced food, ABCD is rejected.

After all, their production of soybeans and corn has been severely reduced, and they originally planned to rely on high prices to recover their blood.

It's all right now, Homo sapiens directly smashed the market, and didn't even give them a chance to get back a mouthful of blood, it simply didn't give them a way to survive.

Bunge's branch in Sydney, Australia.

An emergency meeting is being held at this time.

The branch manager Helen Sachs, as well as the head of the marketing department, Lawrence, and the person in charge of the storage department, Jack Smith, all looked very ugly looking at the data list on the projection screen.

Lawrence pointed to the inventory fan chart: "At present, we have 750 million tons of wheat in stock and 243 million barley in stock. There is no big problem with barley sales. Many breweries in Germany, Britain, and Italy have already sent us inquiries. "

But this so-called good news didn't make the manager Helen happy. She gritted her teeth and said:
"International wheat quotations have dropped to $330 per ton, and we have lost at least $40 billion, damn Homo sapiens!"

As the person in charge of the marketing department, Lawrence is even more aware of their company's current situation: "We have only two options now. One is to wait for next year to see if the price will rise; the other is to sell at a reduced price."

"No! I am opposed to waiting for the price to rise next year." Jack Smith said with a serious face: "Do you think Homo sapiens will reduce production next year? No, they will continue to increase production next year, and the price of wheat next year will only be lower."

Helen thought for a while, and asked, "Jack, why do you think Homo sapiens will increase production next year?"

"Didn't you find out? Mada Island has been controlled by Homo sapiens, and the savannah area in the west of Mada Island and the plateau area in the middle are more suitable for growing wheat."

While speaking, Jack Smith found the natural topographic map of Motor Island on his laptop.

"Look, with Homo sapiens' technology and development speed, it is estimated that Ma Da Island can reclaim tens of millions of hectares of wheat fields, which means that next year Homo Sapiens' wheat production is likely to increase by hundreds of millions of tons."

Hearing this figure, Helen couldn't sit still: "Hundreds of millions of tons?"

This figure seems a bit fanciful, but Helen had to believe it, because Homo sapiens produced 4700 million tons of wheat based on the two tropical plateau areas of Medan Island and Shan State Plateau.

Mada Island is also a tropical area, with plateau areas and dry hot grasslands. The area of ​​cultivated land that can be developed is even wider, and the potential for agricultural production should not be underestimated.

What's more, Homo sapiens' agricultural technology is also very powerful.

When Helen thought of this, she bit her pen anxiously.

"Manager Helen, let's get rid of these stocks of wheat as soon as possible! At $330 per ton, you can earn at least $30. If the price continues to fall..." Jack Smith quickly proposed.

But Lawrence smiled wryly: "Jack, your thinking is too naive. If we make a move now, the price of wheat will drop further."

Now the price of wheat in the international market can be maintained at US$330 per ton. This is because ABCD was reluctant to sell it before, hoping to drive up the price. Unexpectedly, Homo sapiens would be so cruel, and the price was suddenly lowered.

If ABCD is also sold off now, it will definitely lead to a further drop in international food prices.

At that time, as long as the price falls below $300 per ton, it means that their wheat has exceeded the cost price.

This was also the reason why Helen had difficulty making up her mind. She estimated that the headquarters was also having a headache at this time.

The same price as Homo sapiens means that the market will have a chain reaction, and they may lose money when they sell food.

If the price is not the same as that of Homo sapiens, other food-importing countries will turn to Homo sapiens, and their grain can only continue to be stored in warehouses.

For continued storage, Jack Smith also has something to say.

Grain storage warehouses in Australia are divided into levels. There are strategic storage warehouses that can be stored for about 5 years, medium-term warehouses that can be stored for about 3 years, and short-term warehouses that can only be stored for 1 year.

Since Australia produces a lot of grain, it is natural that there is no need for a large number of strategic warehouses for long-term storage. After all, the construction and maintenance costs of long-term warehouses are relatively high, and capital will certainly not build a large number of long-term warehouses.

Therefore, most of the warehouses in Australia are simple short-term warehouses that can only be stored for about one year.

This situation was not a problem in the past, after all, Australia's high-quality wheat is often in short supply.

But this time it became a big problem.

750 million tons of wheat is not a small amount. If it cannot be sold as soon as possible, there are only two ways to go, either in the rotten warehouse, or upgrade the warehouse to increase the grain storage period of the warehouse to two or three years.

Now Bunge is caught in a dilemma.

Selling will cause the market price to fall further, and eventually it will become a loss-making business.

If you don't sell it, it will rot, or pay to upgrade the warehouse.

Either choice is not a good choice.

Jack Smith, who had no choice, asked with tangled eyes: "Lawrence, what can you do?"

Lawrence spread his hands, his expression very helpless: "I have no choice. The key now is that Homo sapiens dumps food at low prices, and we are forced to a corner."

Jack Smith racked his brains, and suddenly he thought of an idea: "Can we go to the WTO and ask Homo sapiens to stop low-price dumping?"

Lawrence shook his head helplessly at this: "Homo sapiens is not a member of the WTO, and they don't need to abide by WTO trade rules. What's more, Homo sapiens has always been domineering, and they don't care what the WTO thinks."

Helen, who had a tooth mark on the tip of her pen, sighed, "Huh... let the headquarters decide! We can't do anything about it."

Lawrence nodded: "This kind of matter should indeed be handed over to the headquarters. We have no way to make a decision now."

Soon Helen wrote the report.

ADM, Cargill, and Louis Dreyfus, which were also suppressed by Homo sapiens, also had high grain stocks due to previous reluctance to sell.

Looking around, there are few buyers in the world who can eat up their grain stocks.

Of course, if they sell at low prices, then the Far East will definitely import a lot.

The problem is that ABCD is not reconciled now!

Once they sell the stored grain at a low price, there will be a lot of losses, which is more uncomfortable than killing them.

It could have profited tens of billions of dollars, but now not only can't make money, but it is very likely to suffer losses. Not to mention that ABCD can't accept it, no one can bear it.

But time was not on their side.

The longer the time drags on now, the more unfavorable it will be for ABCD.

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(End of this chapter)