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

Chapter 460: Are short sellers entering the market to short sell, or are bulls inducing a sell-off?

"Glory, why aren't you at home holding your son? Why are you calling me?" Fang Qingye joked.

"I don't get a chance to hold my son; my parents and Yiling's parents fight over him. Haha," Shi Guangrong said with a laugh.

"What? Your father-in-law and mother-in-law came all the way from Suzhou to see their grandson?"

"Yeah, I arrived yesterday, so it wasn't my turn at all. What are you doing?"

"I'm in Nanxin, fishing with a friend," Fang Qingye said.

"Oh, didn't you see the news? The U.S. Department of Agriculture just released a news report today, lowering its forecast for this year's U.S. soybean production, and as a result, U.S. soybean prices have surged again!"

"These American gentlemen are having a great time."

"The internet says that Minister Vilsack has close ties with Wall Street," Shi Guangrong said on the other end of the phone.

Hmm. This minister later served as Trump's Minister of Agriculture.

Fang Qingye thought to herself, but said aloud, "Hehe, I don't know. Let's ignore him. If he wants to lie, let him continue. Let's not make a move."

"it is good."

The two chatted for a few more minutes before hanging up.

"Hey, Aoba, who did you just say was lying?" Shi Jingsheng asked curiously.

"I said the U.S. Secretary of Agriculture is lying."

Shi Jingsheng was stunned. Damn it, how did this get involved with the US minister?

Of course, Fang Qingye wouldn't explain.

He was thinking that with the U.S. Department of Agriculture lowering its total soybean production forecast again, U.S. soybean prices would surge, and domestic soybean and soybean meal futures would also rise sharply tomorrow.

The short sellers are going to have a hard time again.

Wang Decai didn't sleep well all night.

Yesterday, upon seeing this news released by the U.S. Department of Agriculture, he immediately sensed something was terribly wrong, estimating that soybean meal futures would surge again at the opening tomorrow!
Will it hit the daily limit up immediately?!

This kept him tossing and turning, unable to fall asleep until after 5 a.m. before he finally drifted off to sleep.

Wang Decai got up on time in the morning, ate something quick and easy at home, and then drove to his studio in the Futures Building to wait for the market to open.

Sure enough, at 9:30, the price of the main soybean meal contract hit the daily limit as soon as the market opened!

Upon seeing this, Wang Decai almost fainted!

I have already bought 15000 lots. The soybean meal futures contract fell recently, and I managed to recover some of my losses. But if it suddenly hits the daily limit up again today, I will face the predicament of being forced to liquidate my position!
Seeing that he looked terrible, Wang Ru quickly filled his teacup with water from the thermos and glanced at the screen.

"Hey, the price limit has been lifted," the girl couldn't help but exclaim.

Sure enough, the price, which had been a straight line, began to slope downwards, as if a crack had appeared.

Could it be that short sellers have entered the market again?!
Wang Decai was immediately energized.

Throughout the morning, the soybean meal futures contract's price limit was repeatedly broken, with the bulls and bears seemingly engaged in a fierce battle.

Wang Decai watched the market all morning, but he didn't make a move.

Because he couldn't tell whether this was a major short-selling operation by the main short sellers or a trap set by the main bullish sellers to induce short selling.

If the former, continue to hold the short position, or even add to it.

If it's the latter, try to close the position as soon as possible to minimize losses.

He couldn't make up his mind.

In Nanxin, Fang Qingye was in his office, also staring at the futures market on his computer. The unusual movement of the main domestic soybean meal futures contract in the morning also caught his attention. Taking advantage of the fact that there was nothing important to do in the morning, he looked at various technical indicators over and over again.

Although he knew the outcome of this soybean meal futures speculation, he was not clear about the specific details.

At 11:30 a.m., the morning shift ended, and Fang Qingye prepared to go downstairs to the cafeteria for lunch.

Before Fang Qingye had even left the office, her phone rang. It was Shi Guangrong calling again. "Qingye, have you looked at the domestic soybean meal futures market today?" Shi Guangrong asked immediately as soon as the call connected.

"I knew you'd call to ask about this." Fang Qingye closed her office door and walked downstairs, saying as she went, "I saw it; such a spectacular scene is rare."

"Do you think this is the main force of short sellers entering the market to short, or the main force of bulls trying to lure short sellers?" Shi Guangrong asked on the other end of the phone.

"Oh my, are you testing me?" Fang Qingye laughed.

"No, no, we're just having a discussion."

"This is definitely a bear trap. It's deliberately creating the illusion for small investors that the major short sellers are entering the market, while simultaneously shaking out some of the long investors and making them close their positions and get out. If you don't believe me, just wait and see this afternoon. The stock will definitely be locked at the daily limit up as soon as the market opens."

"Hehe, you can't fool me with anything." On the other end of the phone, Shi Guangrong laughed, his tone slightly mysterious: "Do you know who's pulling the strings?"

"Lin Guangmao and the others? No, that's not right!" Fang Qingye immediately contradicted himself after saying that: "Their funds aren't strong enough, it should be Yong'an Futures!"

"Haha, you guessed it all! It's Tian Hao from Yong'an Futures who's inducing a short squeeze, and Yan Qingliang from Guotou Futures are working together. It looks like they won't stop until they drive the price up to over 4300 yuan!"

"They're playing with fire. Be careful they don't get burned!" Fang Qingye sneered.

"Yes, if it really goes that high, I don't know how many short sellers will be liquidated, and someone might even jump off a building," Shi Guangrong sighed.

"Jump off a building? Jumping off a building is a minor matter!"

Fang Qingye thought of the tragedy caused by the soybean meal speculation in history, and a thought struck her: "Hey, Guangrong, help me find someone."

"Who?"

"Wang Decai, all I know is that this guy also plays the futures market, and it seems he's also trading soybean meal. Can you help me find out where he is now?" Fang Qingye said.

"Is he your friend? How come I've never heard you mention him before?" Shi Guangrong asked curiously.

"Don't ask anymore, just find out for me first."

"OK!"

Wang Decai was unaware that someone was inquiring about his whereabouts; at that moment, he was sitting in front of his computer, lost in thought.

"Mr. Wang, I've ordered takeout. You can eat now."

Wang Ru's voice interrupted his thoughts. He turned around and saw that the girl was carrying two boxed lunches.

"Thank you."

Wang Decai took the boxed lunch, opened it and saw that it was his favorite dish, stir-fried eel with hot oil, but today he only ate a couple of bites and really had no appetite.

Wang Ru naturally knew what was troubling him, and figured that words of comfort wouldn't do much good. Suddenly, an idea struck her: "Mr. Wang, don't you like to flip coins? Why don't you flip one and see what your luck is?"

Ah, that's true.

Wang Decai immediately took out a coin from his pocket, tossed it into the air, and the coin bounced a few times before finally landing steadily on the table.

It's the front!
Toss it again, and it's heads again!
what!
This is a good omen.

Wang Decai immediately felt a surge of appetite and began to eat heartily.

But to his surprise, luck did not seem to be on his side. As soon as the market opened in the afternoon, a large order immediately locked the stock at the daily limit!

What the hell!

The bulls are creating a trap for short sellers!

Wang Decai finally realized what was happening, but it was too late. He no longer had the chance to buy contracts and close his position himself.

Post-market open interest data shows that Yong'an Futures held over 13 long positions, becoming the main force behind the recent surge in soybean meal prices. Wanda Futures held over 5 short positions in the 1301 contract, becoming the main force behind the short positions, but this was far less than Yong'an's holdings.

Many short sellers liquidated their positions and left the market, but many veteran short sellers gritted their teeth and persisted, continuing to add to their positions, while new short sellers also kept entering the market.

Wang Decai chose to persevere.

(End of this chapter)