Chapter 626: Forced Distinction
Because of the weather, the price of wheat futures on the world's major exchanges has risen, and investors who were bearish on wheat before are naturally complaining, and even Wall Street is full of grief.
Link took out 10 billion dollars to go long, almost to fight the whole world on his own. Everyone wants to take a bite of his "fat meat". It's just that they showed their fangs, and before they had time to put their mouths, the direction of the market changed.
The speculators are gritting their teeth, but the wheat farmers are smiling.
In particular, the farmers who planted Benis No. 1 wheat have been recycled by the Benighans Group for more than a week at a much higher price than the futures price at the time. They were of course willing to sell the wheat to the Benehans group.
Because wheat futures were declining at that time, the farmers were worried that the Benihans Group would not be able to maintain the high price for too long, so they signed purchase contracts with Benihans, and in just one week, the Benihans Group signed a purchase contract with those farmers involving one billion bushels of wheat. That's more than one-third of the entire U.S. Benis No. 1 wheat production.
When futures prices began to rise, these farmers began to sell to see if the prices could continue to rise.
One billion bushels of wheat would require the Benehans Group to spend six billion dollars. This purchase price is about the same as in previous years, but about 80 cents higher than the futures price for the same period. Even if the current futures price is recovering, the price of the Benehans Group is still twenty or thirty cents higher than the futures price.
While wheat futures are still rising, neither Link nor Jessica expects its eventual price to increase much. When the futures price rises to a certain level, wheat farmers will definitely sell their wheat. That would bring the market price down.
Link took out tens of billions of dollars to make wheat futures, but he wanted to stabilize the price of wheat. Now that the goal has been achieved, he asks Neil and Flon to slowly bring the funds back. This will also weigh on wheat futures prices.
As for the more than a billion dollars in paper earnings, he didn't pay much attention to it. He is more concerned about how to protect the price stability of wheat.
He went to Fox and talked to Neil before coming to Jessica's office.
"It's done?" Jessica certainly knew he had gone to Neil this morning. "What does Neil suggest?"
He suggested that it should take more than half a month to close the position slowly to avoid large fluctuations in the market. Link poured twice as much coffee, gave Jessica a cup, and continued. "I also talked to him about the price of Benis No. 1 wheat. ”
Jessica looked at him and waited for his next step.
Link sat down across from her and said, "We all know that the Benis One is special. But the market doesn't have that perception. ”
Benis No. 1 is not only high in yield, but also contains higher protein, and is also more versatile than ordinary hard red winter. If it is allowed to be consistent with the price of ordinary hard red winter, it is not only unfavorable to the farmer, but also the price is easy to be controlled by speculators. This is not good for the Benihans Group.
Jessica understood what he was thinking when she listened to him, "You mean to distinguish them from ordinary hard red winter?"
"Yes. That's what we're doing now. We bought a large number of Benis 1 at a special price, and we showed our attitude with practical actions. The question is, are we going to keep doing it. ”
"If one goes on like this, we may be able to guarantee that Benis One will remain special, but our market is ......"
Jessica's concern is real, and they can buy wheat from farmers at a relatively high price. But when they sell their flour, they don't necessarily get a better price.
"That's where we come in. ”
Link took a sip of his coffee and frowned.
Jessica laughed and sprinkled the remaining sugar from the half-poured sugar packet into his cup, "So what do you think?"
Link said as he stirred the coffee, "Control the acreage of Benis One. I plan to limit the acreage of Benis 1 to no more than one-third of the world's wheat acreage. The Benehans Group does a few more operations to clearly distinguish it from the ordinary hard red winter. Try to make sure that it costs more than 15 cents more than the average hard red winter. ”
Jessica frowned and thought for a while, and said, "That's difficult! In the United States alone, there are tens of thousands of farms that grow it, and if it is extended to countries around the world." It's hard for us to get them to be with us. ”
"No one wants to make more money. Link knew it was hard, but he thought it was just a notion that Benis No. 1 was a special hard red winter. As long as this concept is deeply rooted in the hearts of the people, the farmers who grow it will consciously protect its special price. "So, we not only have to control the acreage, but we also want to keep our customers as stable as possible. We only supply that many seeds each year, and unless the original farm gives up planting, the new farmer will not be able to get the seeds. ”
"In the U.S. we might be able to do that, but it might not work in other countries. ”
"I'm glad we don't have any real partnerships with other countries. Link said with a smile. "Then when we cooperate, we can put forward the preconditions for this cooperation with them. ”
Jessica pondered the feasibility of his idea.
Link's idea is different from that of many businessmen. Most businessmen would rather cut prices than capture a larger market share. Link, on the other hand, wanted to limit the market expansion of the Benehans Group. This is contrary to the pursuit of business.
But she also thought that if the Benehans Group could maintain a third of the market, it would be very good.
First of all, this share makes it impossible for the US government to impose sanctions on the Benehans Group in the name of antitrust.
Secondly, it would allow the farmer to see himself as a true collaborator with the Benehans Group, and the bond of interest between the two parties would be stronger. Other services and products of the Benihans Group are preferred by these farms.
In the end, Jessica felt that Link intended to use this approach to set up Benis No. 1 wheat as a model for pollution-free food. With higher prices, higher yields, and higher incomes. Farmers will also be more willing to practice pollution-free standard farming.
Thinking of this, she asked, "I don't think we're going to do a third of the business all the time." ”
"Right now, we only produce about 20 percent of the U.S. market with wheat seeds," Link said with a laugh. When we expand to a third, we reinforce this philosophy. When this concept is deeply rooted in the hearts of the people, we can slowly expand the market. Perhaps, we can make Benis No. 1 wheat one of the world's leading wheat varieties before the patent expires. ”
Benis No. 1 wheat is highly yielding, although it is achieved through special technology. But this particular technology is not alien technology. As long as someone wants to study it, it will be studied one day. The Benihans Group is just one step ahead. He didn't expect to stay ahead of the curve. And when Benis 1 is fully promoted, maybe Benis 2, which has a higher production and added value, will come out.
Jessica thought for a moment and said with a smile, "Then let's try to make Benis One an excellent brand." ”
Link saw that she agreed with his idea, so he didn't say anything more. "In a few days, our first batch of exported llamas will be shipped," he laughs. Are you ready for New Zealand?"
Jessica looked at her watch and saw that the date was July 15. She smiled and said, "I'll ask Luo over there to contact Luo again to confirm ......," she said, with a look of surprise on her face.
Link was stunned and asked, "What's wrong?"
Jessica looked up at him with a strange look and said, "It's the fifteenth! I didn't seem to have my period last month?" and she thought that her waist seemed to be more than an inch bigger. She also thought it was because she went on vacation some time ago and didn't exercise to gain weight. Now it seems that it is not like that at all.
Doesn't seem to have come?
Link remembered, it was really like that. With a hint of surprise in his eyes, he stood up abruptly and said, "Let's go to the hospital!"
Two months pregnant?
The result of the doctor's examination turned out to be that Jessica was two months pregnant.
The Links were amazed because Jessica had only missed one period.
The doctor told her that it was probably when the child was conceived, just when the menstrual period was about to come, that is, during the safe period.
Jessica certainly knows that the safe period is not absolutely safe. But for the first time, she knew that even in the first month of pregnancy, she could have periods. It's just that the amount will be smaller.
She thought back to the scene at that time, and it was really very small.
After being forcibly brought home by Link, she touched her stomach and said to Link, "It's too well-behaved." It's been two months, and I don't even feel it at all. ”
Link put his arm around her, smiled and touched her chest, and said, "Who said it didn't happen? ”
Jessica laughed and said, "I thought it was just getting fat." ”
Link moved his hand to her lower abdomen and smiled, "We're stupid mom and dad!" but I don't think it blames us. Luckily, it's healthy. Jessica was pregnant for two months without responding, and both of them were worried that the child was not developing properly. The doctor checked and said everything was fine, and they were reassured.