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Chapter 111: Swinging the Sword to the Jackal

After the car drove to Zhang Yan, he jumped out of the car, narrowed his eyes and shouted in the field: "Captain Zhang, Town Master Zhang Yan, are you here?" He turned a blind eye to Zhang Yan, who was close to him, and Zhang Yan suddenly remembered who this person was and said to the township leader Nong: "Immediately organize the masses to fight drought. If you have any questions, the most important thing is to solve the problem rather than shirking responsibility."

Afterwards, he reached out and held the hand of the visitor: "Lao Jiang, why did you come here today? I don't produce soybeans!" It turned out that the visitor was the Changjiang River in Shuangyashan Farm in Heilongjiang. Zhang Yan worked with him around 90 years ago. He is a very refreshing person. He has not cut off contact in recent years. The year before yesterday, Zhang Yan went to Europe for inspection and vigorously promoted the soybeans in Shuangyashan Farm.

"Brother, let's not say polite words. Let's get in the car first." Jiang Wanli frowned, pulled Zhang Yan to the passenger seat, and drove to chat with Zhang Yan in person. Jiang Wanli came this time on behalf of the China Soybean Association. After all, Zhang Yan's European speech brought a deep impression on these people, believing that Zhang Yan could perform a good show to turn the tide again.

In fact, it is just one thing. Soybeans are unsold. What should I do? Due to Zhang Yan's lobbying in Europe last time, the soybeans in Shuangyashan have been selling well. Compared with the hybrid soybeans in the United States (excerpted from Zhang Yan's speech), the purebred soybeans in Shuangyashan have been selling well.

However, the domestic situation is not optimistic. Shuangyashan soybeans have begun to experience strange situations in hot sales abroad. China imported 3.2 million tons of soybeans the year before last year, while the import volume was 4.32 million tons. The cumulative import volume in the first half of this year has reached 6.35 million tons. The annual import volume is expected to exceed 10 million tons.

Jiang Wanli looked for Zhang Yan, with the purpose of asking Zhang Yan to see how to reverse the situation. After all, China's soybean consumption land is very stable, and if there are more imports, they will naturally sell less.:: It is not realistic to expect foreigners to buy soybeans. Foreigners' consumption demand for soybeans is far less strong than that of Chinese people.

"Why are there so many soybeans imported? Is anyone digested them?" Zhang Yan frowned and keenly found the root of the problem. If domestic oil presses did not purchase goods, American soybeans would not go straight to the city and the essence of the problem lies in the fact that those manufacturers imported American soybeans.

Jiang Wanli said angrily: "It's not Shandong and South. These factories are large in scale, and most of them are Sino-foreign joint ventures, with very favorable taxes. Imported American soybeans are crazy and they do one-time transactions. So whenever the US soybeans are shipped, they buy in large quantities. When China's soybeans are ripe, they don't buy at all or just buy a little. If it weren't for the sales in Europe, they would have eaten the price to death.

And the country didn't know what it was. At the end of May, the State Administration of Taxation issued a notice to cancel the value-added tax on imported soybean meal. After that, the opening was opened. American soybeans came in, and the price of our soybeans also dropped. Although the tax administration issued another notice this month, announcing that it would continue to impose value-added tax on imported soybean meal. However, due to the large number of imported soybeans coming to Hong Kong, the decline of domestic soybeans can no longer be restored."

Zhang Yan nodded. The opening was so bad that he not only did not help his own people, but also stepped on it. It harmed the interests of national interests and harmed the interests of soybean farmers, so that foreigners could make money. If this continues, this opening would squeeze out Chinese soybean farmers.

After entering the capitalist society, productive enterprises have always dominated resource enterprises. In this era, the prices of raw materials in the third world such as Asia, Africa and Latin America have been falling, while the prices of finished products have continued to increase. However, when China rises, the price mechanism has completely failed and the prices of raw materials have soared. As far as Zhang Yan knows, there are many examples. Iron ore has tripled, so why is this happening? Zhang Yan finally came to the conclusion after thinking for ten years.

That is, without group operations and capital advantages, there is no right to pricing!

Market prices have always been determined by both supply and demand factors. As the world's largest importer and demand country of soybeans, China is fully qualified to dominate soybean prices and influence market prices. The reason why it passively accepts international prices unilaterally dominated by the United States is that China does not have a group mechanism, so when playing cards according to the rules of the market game, it is messy, but millions of people are giving away good cards, which is naturally full of flaws.

In fact, if you play the demand card, the "data card" well, it can become one of the most powerful factors affecting the international market market price. For example, the oil price of the US Cbot, the New York Mercantile Exchange, and the copper price of the LME (London Metal Exchange).

The future trend of each commodity price in these global pricing centers is a soft guide price, and China lacks such market pricing and passively accepts these as frauds of market prices. The most obvious example is that the price of soybeans in the United States has always served American soybeans. When American soybeans are on the market in large quantities, there will always be news of price increases, so American soybeans can be sold at very high prices. After American soybeans are sold, there will be immediate reports of factors that are not conducive to price increases, so soybean prices fall.

"But the current situation is that China does not have its own official release channels, but is released by statistics by other countries or institutions. As a result, China's data cards have become a weapon for other countries and speculators to attack China, and there is no market pricing agency that serves Chinese soybean farmers, which is extremely unfavorable for Chinese soybean farmers."

"Domestic departments and enterprises block news for small profits; while the United States generously provides all data to the world for free. The result is conceivable that not only Chinese companies, but even the global market are led by Americans, and the mystery here is worth pondering.

"My opinion is to establish a joint enterprise, or soybean alliance, unify the pricing mechanism, and prevent US interference."

"Well, but this is not so fast. What we lack now is time. The country has already written down. Let us go to Cbot to purchase soybeans immediately!" Jiang Wanli said his trump card in a hurry.

"Just go, it's no big deal. Our country's futures industry has been in operation for a long time and will not suffer any losses." Zhang Yan didn't care. Buying more and buying less is a matter, it's a technique, and it doesn't affect the overall situation. However, setting a price mechanism is different. That's a Tao, and the importance is completely different.

"Zhang Yan, let me tell you that the country has sent out the news of our going, and it has said how much we buy, where we buy, and when we deliver the goods. We are like fat sheep waiting to be slaughtered, and we are sending it to the American's mouth!" Jiang Wanli said angrily, holding on the steering wheel and knocking it, the car suddenly tilted and stopped on the side of the road.

Zhang Yan was surprised now. He had seen the real thing, but had never seen such a real thing. He first reported the number of things to buy, and it also explained when he would buy it. Americans like such customers the most. In Zhang Yan's impression, the soybean crisis in 2004 was the product of this condition.

In August 2003, the US Department of Agriculture made a major adjustment to the monthly supply and demand report of soybeans on the basis of weather impact, adjusting soybean inventory data to a low of more than 20 years. As a result, the price of cbot soybeans rose from the lowest point of about 540 cents in August 2003 to about 1,060 cents in early April 2004, a record high in nearly 30 years. This increase is equivalent to the rise of the price in China from RMB 2,300 per ton to RMB 4,400.

Under the control of panic, Chinese squeezers have increased their procurement efforts. In early 2004, they "snatched" more than 8 million tons of soybeans in the United States, which is equivalent to an average price of RMB 4,300 per ton. But then, starting from April 2004, international soybean prices fell rapidly, with a drop of nearly 50%. Domestic soybean processing changed from the original profit to the loss of the entire industry.

Faced with such a price difference, some domestic processing enterprises, especially private enterprises, had no choice but to breach the contract and deposit that they had originally signed at high prices, which is the so-called "ship washing" incident.

In response, the measures taken by the US include: some large international soybean suppliers sued Chinese importers for breaking the contract, with the amount of compensation estimated to be as high as about 6 billion yuan; international grain merchants jointly boycott Chinese private enterprises, and except for some Chinese companies they have participated in, they no longer quote other Chinese importers; these suppliers jointly modify the text of the soybean export contract for China, and the revised contract terms are even more unfavorable to Chinese importers.

It can be foreseeable that if you go to the purchase this time, the result will not be much higher than the one in 2004. Perhaps China's crushing industry will be occupied by Americans four years ahead of schedule, which is something that Zhang Yan cannot accept. After thinking for a while, Zhang Yan said: "If you have to listen to me, I can do it well. If you don't listen to me, I will have no choice."

Jiang Wanli was overjoyed: "I listen to you all, and I knew you would not leave us alone. You are a righteous person."
Chapter completed!
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