American Ranch

Chapter 515 Balance
It happened that Chen Mo was also a little hungry, he hadn't had breakfast yet.

There are Chinese restaurants and Western restaurants on this floor, both of which are relatively high-grade, and the kind that costs 30 yuan for a serving of twice-cooked pork.

The price is expensive, there must be a reason for it. There are three chefs in the restaurant, with a monthly salary of [-] yuan, and one chef.The name of the restaurant is Tangxia Yipin...

Then there is a western restaurant, the kind with per capita consumption starting at 300 yuan.

Chen Mo and the others went to Tangxia Yipin and ordered a few dishes.Boss Zhou said: "The November and December contracts released by Yunshan Breeding Company are 11 Boer goats. One contract is for 12 goats. The rams weigh more than 9600 kilograms, and the ewes weigh more than 100 kilograms..." Boss Zhou looked. With Chen Mo.

"Ok?"

"The book value of a contract issued by Yunshan Breeding Company is 12 yuan?"

"Ok?"

"But only 5 yuan can buy a sheep contract from Yunshan Breeding Company in November and December."

"Huh?" Chen Mo nodded.

Boss Zhou scratched his head: "Now, the Boer goats of Yunshan Breeding Company, on the books, cost 26.85 yuan per kilogram. But if it rises to 30 yuan per kilogram by the time of delivery, the real value of 100 sheep is 18 yuan. Does that mean that when the actual delivery is made, a contract has to be supplemented with 13 yuan?"

Chen Mo stroked his chin and shook his head...

"There is a difference between a pig contract and a sheep contract, and the difference is not too great. These contracts are mainly based on the price per kilogram...a contract, whether it is a pig or a sheep, is one hundred heads. The sheep contract is 5 5 yuan, this 11 yuan is equivalent to the security deposit in the futures contract..." Chen Mo knocked on the table: "The contract specifies the specifications of the pigs and sheep to be sold. For example, the November and December pigs sold by Yunshan Breeding Company Boer goats, it is clearly marked on it, 12 ewes and 50 rams, all castrated, and the total weight is clearly marked on it, 50 kg. It says 5000, but it does not mean that it must be 100, But certainly not more than 100..."

"The unit price and total weight are marked on each of the contracts released in the market. The actual value of a sheep contract in Yunshan Farm is 13.425 yuan. But now, if you buy a contract from the market, you need 5 yuan. , There is a price difference... The part of the price difference was actually paid by the Yunshan market first. In other words, it cost 5 yuan to buy a sheep contract from the Yunshan farm. But its actual value is 13.425 yuan .To pick up the goods, you have to make up the price difference..."

"How could those one hundred sheep weigh exactly 5000 kilograms?"

This Nima is just a dead end.

"It is marked 10 kilograms, so there must be some errors in the actual delivery. But it is also written that 10 contracts can be used for physical delivery... 5 contracts are [-] sheep, [-] kilograms, and there will only be more or less delivered to customers. It will be less. If there is more, there will be more, it doesn’t matter.”

Boss Zhou let out a long breath, and he probably knew what was going on: "Then if... the contract I bought now is 26.85 yuan per kilogram. When the price of sheep rises or falls at the time of delivery, it will still be based on the contract at that time." delivery at the above price?"

"Of course. When a contract is sold, it means that the farm has sold the sheep. It is now May, and the sheep at Yunshan Farm will not be delivered until November and December. For a few months... sheep contracts can be bought and sold freely." Chen Mo said with a smile: "One thing is certain, from now to December, the price of sheep will definitely fluctuate... just like futures."

Boss Zhou nodded, he already understood it roughly, just like futures.But this market is mainly a seller's market, and the seller here refers to the breeding company... In this way, it is too unfriendly for players who want to short.However, if this market becomes bigger in the future, it may not be so.

Now in the market, in the wholesale market, a kilogram of mutton costs 55 yuan.Boss Zhou is in the wholesale business of meat, and this business is still very big...

Live sheep in China are usually sold when they are raised to sixty to seventy catties, and some are sold at forty or fifty catties.The meat yield of such sheep is not high...there are many, and the meat yield is even less than 50.00%.If the meat yield reaches 60.00%, then the price of 26.85 yuan per catty of live sheep from Yunshan Breeding Company is too cheap.

But it is also troublesome, these sheep will not be delivered until November.

In November, it is reasonable to say that the price of mutton is the highest at that time, but maybe... there are many factors that affect the price of mutton.One of these is the price of pork...

"Is the contract price fixed?"

"The contract price is fixed, but the face value represented in a contract is not fixed. A sheep contract is different from a pig contract. The price of a pig contract is basically the same..." Chen Mo took a sip of tea and continued: "The sheep contract is It was offered by the breeding company that provided the sheep. You can discuss the specific price with the breeding company. If they sell the contract at a cheaper price, that’s okay..."

The contract price of hogs does not represent the price at the time of delivery, and the delivery price is determined by the real-time hog price.Because it's a huge market...

But the price of the sheep contract is equal to the price at the time of delivery... As for the intermediate purchase and sale, it is up to the contract holder to decide.

"It's easy to understand if the pig contract is bought down. But how to deal with the sheep contract when it's bought down?"

"Mao pigs can be bought up or down, and Yunshan Market is a middleman who helps to complete the contract. The dealers of sheep goods are individual people, and they are required to hold at least 100 contracts in their hands, and the contracts must be paid in full. The dealer can Directly participate in the betting with bearish customers, or place the contract in the market, and the market will regenerate it into a bullish or bearish contract..."

"This banker, why don't you do it yourself?" Boss Zhou took a sip of tea and sneaked a glance at Chen Mo.

"The government doesn't allow it." Chen Mo spread his hands helplessly.

The Yunshan Market Company is owned by Chen Mo and Bai Xiaoou, but there are hundreds of companies participating in various businesses of the market...there will be more in the future.It would be great fun if Yunshan Market were to be the banker...but the other companies involved would not be willing either.

"What's the benefit of being the banker?"

"You can directly participate in VAM. You should know the risks and benefits of VAM... and put the contract on the market for consignment. This is considered a secondary sale. After each contract is generated, the market will charge a fee. When closing a position, the market will charge a 5.00% profit share to the profit-making party...the handling fee and profit share, the market will share 100/[-] with the banker who holds the big contract. The big contract, that is, the full contract, the holder is Breeding companies, major customers who have purchased the contract in full... Then there is a secondary market, that is, for the convenience of transactions, a large contract with full payment can be split into [-] small contracts... For details, you can go to the marketing department Learn about."

The delivery date of small contracts is different from that of large contracts, half a month earlier... The transactions of these small contracts are basically completed on the Yunshan Market APP.The delivery date of the small contract is the date of closing the position. After closing the position, the small contract becomes a large contract, and finally returns to the dealer... Then the dealer holds the big contract, or prepares to sell it, or delivers the real thing... But it doesn’t matter How to play, when the delivery date of the big contract comes, the market will definitely prepare enough live pigs and live sheep for slaughter.What's going on here is a balance...

In this market, if you have enough capital, you can indeed manipulate the price.But so what, anyway, it will not affect the Yunshan market, nor will it affect the profits of the farmers...

And these big capitals must be big wholesalers, big suppliers like Boss Zhou, or even supermarket chain groups, because they need to deliver spot goods...

(End of this chapter)