I'm in the county town, and you say I'm a big shot?

Chapter 456 Price! Price!
A farm in Illinois, USA.

Qiao Yongfeng, wearing a straw hat, stood on a country path, surrounded by endless soybean fields.

This is Bell Place Farm, located in central Illinois, covering more than 800 hectares and entirely planted with soybeans.

Qiao Yongsheng came to the United States last week with only one purpose: his company will purchase a large quantity of American soybeans to alleviate the predicament of insufficient domestic soybean production capacity.

Of course, he's not the only company like that.

It was around 2 p.m., the hottest time of day. The sun was blazing down on the earth. Qiao Yongfeng was wearing a straw hat, and sweat was dripping down his face.

No matter how hot it is, he will come in person.

“Mr. Smith,” Qiao Yongfeng said in fluent English to a burly white man wearing a felt hat and jeans, carefully observing the growth of the soybeans around him. “The soybeans are about to flower, and too much drought will affect their flowering.”

Smith, the owner of the farm and the board secretary of the American Soybean Association, was specifically responsible for receiving the businessmen from China.

After listening to Qiao Yongfeng's words, Smith said frankly, "You're right, Mr. Qiao. This year's abnormal climate, with its continuous high temperatures and drought, has had a great impact on our soybean planting in the United States. The excessively high temperature has led to water shortages, which is not conducive to soybean growth. Therefore, a reduction in soybean production this year is a foregone conclusion."

At this point, Smith said in a sorrowful tone, "God, we are all your devout believers, why did you send such a calamity to punish us?!"

After saying that, he even pretended to draw a cross on his chest.

Qiao Yongfeng glanced at him and smiled: "But, Mr. Smith, you're transferring God's punishment on us Chinese. Your soybean association is offering me 1430 cents per bushel, which is 23% higher than the same period last year!"

"Ah, Mr. Joe, you've wronged us! In your Chinese parlance, we're more wronged than Dou E!" Smith quickly explained.

"As you can see, a reduction in soybean production this year is a foregone conclusion. Yesterday, my country's Ministry of Agriculture announced a further reduction in US soybean production to 7169 million tons, a 14% decrease from last month's forecast! Lower production will inevitably lead to higher prices! Chicago soybean futures prices have already risen to 1520 cents per bushel today, and there is still an upward trend!"

"Mr. Qiao, we've been partners for many years, so I'm offering you a fair price. Do you really doubt the data released by our Ministry of Agriculture?!"

Qiao Yongfeng snorted, not answering, his eyes glancing around at the soybeans.

In the global agricultural sector, the U.S. Department of Agriculture (USDA) is one of the few authoritative information providers, and this information is provided free of charge. Anyone with an internet-connected computer can access the USDA's weekly and monthly production and demand information for any major agricultural product.

However, in China, there are also official agricultural information agencies that provide agricultural product information similar to that of the U.S. Department of Agriculture, but they charge a fee!

For example, to obtain the "Daily Report on Oil Market Prices" from a certain organization, one must pay 2000 yuan per year; to access more information from the organization, one must pay 15000 yuan per year.

It's obvious who has more visitors and who has more influence.

“Mr. Smith, I’ll think about it some more when I get back.” Qiao Yongfeng did not give a direct answer.

“OK, Mr. Joe,” Smith replied, then added, “However, my friend Joe, I must remind you that according to our forecasts, soybean prices will continue to rise, and they probably won’t be this price in a while! You’d better make a decision sooner rather than later.”

"Thanks for reminding."

Qiao Yongfeng replied, then followed Smith back to the farmhouse area, politely declining the invitation to stay for dinner. He got into an SUV, wobbled and swayed out of the farm, and arrived in Springfield, the state capital, in the afternoon, returning to his hotel.

I had just returned to my room, taken a shower, and changed my clothes when someone knocked on the door.

When Qiao Yongfeng opened the door, a young man answered. His assistant, Yan Shi, also looked travel-worn. Yan Shi was thirty-three years old. He graduated from the University of International Business and Economics and obtained a master's degree in international trade from the University of Pennsylvania. He had previously worked at the well-known American trading company Home Depot. After returning to China, he joined Chengbang International Trading Company, where he now serves as the general manager's assistant and is Qiao Yongfeng's chosen successor.

"You're back too? How was the trip?" Qiao Yongfeng said, then went back inside and sat on the sofa, lighting a cigar.

"Mr. Qiao, as you instructed, we asked the local Chinese Chamber of Commerce to contact some small-scale soybean farmers. They reported that soybean production will decrease this year, but the decrease will not be significant."

"Not much?!" Qiao Yongfeng was taken aback: "How much reduction are you expecting?"

"No more than 10%."

"reason?"

“Although the weather is dry, most farms have irrigation systems, which can alleviate some of the drought,” Yan Shi explained. “Of course, the farms we visited were all small farm owners, with areas under 100 hectares and relatively complete irrigation facilities, so the drought did not have a particularly large impact on them.”

Qiao Yongfeng nodded in agreement.

Indeed, for farms like Smith's, which cover 800 hectares, pumping water for irrigation is a major problem.

Qiao Yongfeng briefly recounted what he had seen and heard at Bell Place Farm, and Yan Shi frowned deeply.

"Mr. Qiao, who is telling the truth? This directly affects our subsequent negotiations."

"Yes, that's indeed a difficult question." Qiao Yongfeng, smoking a cigarette, suddenly asked, "Yan Shi, if you had to choose, what would you choose?"

Yan Shi hesitated for a moment before saying, "I believe Mr. Smith more. After all, he is a large farmer, and the U.S. Department of Agriculture has also issued a similar forecast. I don't think he is lying."

"Oh," Qiao Yongfeng didn't answer, but said, "Okay, you've worked hard too, go back and get some rest."

After Yan Shi left, Qiao Yongfeng stood on the balcony and looked at the night outside.

Springfield, also known as Springfield, is the capital of Illinois, but it is not large. The city's population is said to be only 100,000, which is less than the population of a county in inland China. It looks just like some county towns in eastern China.

Qiao Yongfeng looked into the distance, where a vast expanse of darkness stretched out before him. He knew that it was a huge field of soybeans, half of which would be sold to China!

Price is undoubtedly a sensitive issue.

His trip to the United States to purchase soybeans was not just about Bangcheng International; it was actually a kind of trial run. Just before leaving Yanjing, he had dinner with a director surnamed Liu from the Ministry of Commerce. Director Liu jokingly said, "President Qiao, you're setting an example for domestic companies. China Grain Reserves Corporation, COFCO, and Dabeinong will follow suit. They're all watching you."

This weighed heavily on Qiao Yongfeng's mind.

But the current situation is not optimistic.

The consensus is that soybean production is declining, and the price of US soybeans in the futures market is soaring, directly affecting the spot price of soybeans.

futures
Qiao Yongfeng suddenly thought of Fang Qingye, who was far away in China.

He trades futures in the country, but I wonder if he's paid any attention to the domestic soybean futures market?
(End of this chapter)