I am farming in the real world.

Chapter 215 Seeking to gain pricing power over soybeans, desert soybeans are launched in a shocking way!

“Take back the pricing power of soybeans?”

After these words were spoken, the grain and oil bosses present all fell silent.

As the world's largest soybean import and consumption market, China imports more than 1 million tons of spot soybeans from all over the world every year, and produces more than 2000 million tons of soybeans annually.

The money spent on importing soybeans is as high as more than 4000 billion yuan every year.

However, even in this world's largest soybean buyer's market, domestic grain and oil giants are unable to interfere with the pricing of soybeans.

Even Brazil, the world's largest soybean producer, has lost its control over soybean pricing due to land privatization issues and the occupation of large tracts of private farms by American capital.

The largest buyers and sellers in soybean trade have no pricing power. Just like the pricing power of oil, it is all left to the American financial market to decide. This is simply a joke in the eyes of MC profiteers!

The reason for this embarrassing situation is that the dispute over soybean pricing power is essentially an economic and financial contest between the two major countries, China and the United States.

"Soybean futures are highly tied to the Wall Street financial market in the United States. More than tens of billions of dollars of funds are circulated in it for speculation every day. It is not easy to regain the pricing power!"

"This is stealing food from the Americans. Doesn't Mr. Shang know this?" Gu Xianmin shook his head and sighed.

Although COFCO and COFCO have seen rapid business growth in recent years, they have even fought several battles with the four major grain traders in the international market, with both sides winning and losing.

However, the pricing power of soybeans has always been a thorn in the hearts of domestic grain and oil giants.

I can't pull it out, and it hurts when I move.

They can only adopt the strategy of forming alliances and making alliances, continuously suppressing the originally largest share of U.S. soybean purchases, and distributing the purchasers to major soybean producing areas in the world such as South America and Ermao.

In addition, the domestic soybean production capacity has been continuously increasing, which has pushed down the originally high U.S. soybean price from 1300 cents per bushel a few years ago to the current 1100 cents per bushel.

The chain reaction triggered by the drop in soybean prices has spread from the grain market to the feed and breeding industries.

Why have beef prices started to plummet in the past two years?
The price of domestic beef has been halved from more than 40 yuan per pound in the past to more than 20 yuan this year.

Ordinary people thought that it was the Argentine Saint who came to power and made the price of imported Argentine beef drop to rock-bottom prices.

In fact, the real underlying reason is that the price of soybeans fell by more than 20%, which triggered a large-scale price drop in feed. The reduction in breeding costs led to a sharp drop in beef prices.

This is a people's livelihood economy that is closely linked to each other. It is not easy to take back the pricing power from the Americans.

After all, speculators all over the world recognize the American financial market and the financial hegemony of the US dollar.

Domestic futures, stock markets, and even foreign exchange all have strict restrictions on foreign capital. If one wants to manipulate the liquidity of the soybean futures market, the convenience is far less than that of Wall Street, where one can play with money.

Seeing that everyone looked worried, the old merchant smiled mysteriously and said, "It's actually very simple to grab food from the Americans. As long as Red Star Trade fills the gap in American soybeans, won't the problem be solved?"

As soon as these words came out, Deng Xiong, who was sipping wine from a glass, immediately coughed several times because of the strong Maotai. "Ahem... Mr. Shang! We import more than 3000 million tons from the United States every year, and this year it is estimated that it will reach a new high of nearly 4000 million tons! Are you sure that Red Star Trade can make up for such a huge gap?"

Deng Xiong even raised his voice tone unconsciously while speaking!
You know, as the leading players in Rizhao Port, several bigwigs present here have heard about the "cash spot" delivery method that Red Star Trading had previously introduced.

He even sent his marketing team to infiltrate the sales group of Red Star Trading and secretly observe for a period of time.

Relying on its own 5-ton bulk carrier fleet, Red Star Trading continuously transports soybeans from Russia's Far East, and then sells them to small and medium-sized grain and oil companies at a discount price of about % lower than the market price.

At first, the scale of soybean imports from Red Star Trading was not large, with one ship carrying 10,000 tons every three days, which was considered a small matter in the eyes of giants like COFCO.

However, after a few months of development, the number of 3-ton bulk carriers arriving at the port every day increased sharply to 4 or 20, and recently even the largest -ton class giant ships in the shipping market began to be hired.

In just three months, the company achieved a landing scale of 3 million tons, directly wiping out all the local small and medium-sized grain and oil companies in Rizhao.

At this growth rate, Red Star Trading’s soybean imports may reach more than 2000 million tons a year, accounting for 20% of the country’s annual soybean imports!

At this level of import volume, even domestic giants such as COFCO and China National Grain and Oils Corporation dare not underestimate it.

What's more, they quietly acquired the controlling stake in Rizhao Port, so naturally their say at the dinner table is much greater than before.

If not for this, Gu Xianmin and Deng Xiong would not have put down their busy work and specially made time to attend this dinner. It was only because of the incredible import volume of Red Star Trade that they gave this mysterious merchant a face.

"It's only 3000 million tons. Next year, we at Red Star Trade expect to provide no less than 5000 million tons of soybeans to the domestic market. After that, the annual supply will maintain a growth rate of about 5000% on the basis of 10 million tons."

The big-nosed old businessman reported a huge number, which surprised the bosses.

"What a joke! Annual imports of 5000 million tons?"

"Where did all these soybeans come from?"

"What Mr. Shang means is to bypass the annual import base of 1 million tons and bring in another 5000 million tons of pure incremental imports? However, the production capacity of major soybean producing areas such as America and Eastern Europe is basically fixed."

"Even if South America's production capacity is further increased, it's impossible to produce so many soybeans all at once!"

The atmosphere at the dinner table was in complete chaos.

Everyone looked at Lao Shang with doubtful eyes.

As the head of a domestic grain and oil giant, he is naturally well aware of the production capacity data in various regions.

This includes the 500 million tons of soybeans recently imported by Red Star Trading, although the specific source has not yet been traced.

However, after discussing privately, everyone speculated that it should be transported from the Ermao production area in Eastern Europe to the Far East in some incredible way and then secretly sold into the country.

After all, although Damao and Ermao were beaten to a pulp, their private business activities did not stop.

Whether it is oil, gas or food, these resources related to people's livelihood are all involved in normal trade.

The old merchant laughed and said pretentiously: "Who said that the increase of 5000 million tons needs to be purely imported?"

"Not imported? Could it be that they grow it themselves in the country?"

"Could it be that Mr. Shang drank too much and lost his mind?"

"In our country, apart from the three major plain production areas in Northeast China, North China and Northwest China, where soybeans can be grown on a large scale, the production capacity is only 2000 million tons. Where can we grow soybeans on such a large scale?"

"Even if you have the will and the strength, there is no arable land for you to plant!"

Gu Xianmin and Deng Xiong started arguing with each other until their faces turned red.

Some smaller bosses even started toasting Lao Shang after the debate, asking him to give up this unrealistic idea as soon as possible.

After all, arable land in the country is extremely limited, and there is even less plain arable land suitable for large-scale mechanized operations such as soybeans.

It is already very limited to use it to grow rice and hold the rice bowl in our hands, so where can we find such a large piece of suitable arable land to grow soybeans?

Seeing that the big guys had been whetted by him, the old businessman felt that the time for negotiation was ripe, so he clapped his hands and lowered a white curtain on the screen on one side of the box.

As the projection above the screen started, a scene of picking fruits shot at an outdoor planting base appeared in front of everyone.

In the picture, rows of lush soybean plants are swaying gently in the wind.

The scorching sun overhead shines on the finished plants, emitting a dazzling golden glow.

When the camera began to zoom out as the drone took off, the big guys in the box who were originally slightly drunk shuddered all over, and when they sobered up, they all stared at the golden glow that filled the screen with their mouths wide open as if they had seen a ghost.

Because they discovered that the golden color was not just the color of the plump soybeans that the farmers in the camera were picking and peeling open the pods.

Similarly, there is the endless yellow sand desert under the feet of the farmers, which appears in the wide-angle lens!

After the 30-second promotional video was finished, the old businessman took out a plastic-wrapped bag of soybean samples from his pocket and said, "Please allow me to introduce it to the CEOs!"

"This bag is the one shown in the video. It is a sample of the first generation of drought-resistant, salt-tolerant and alkaline-tolerant desert soybeans 'Super Sand No. 1' that was developed by Red Star Trade and Cube Agricultural Technology Company and is suitable for planting in extremely harsh environments."

(End of this chapter)