20, July 23.

The night of the outbreak of large-scale downy mildew in soybeans in North America.

Britain.

London Stock Exchange.

David looked at the market, the prices of soybeans and soybean meal took off in an instant, his hands were trembling, and he didn't dare to issue short orders now:

"Quick, throw away all the empty orders......"

"It's too late!"

In fact, ABCD has secretly informed David and others, but they are still one step late, and the forces that are long in the market are like a dam breaking in today's offensive.

David, who was still answering the phone just now, watched the prices of soybean and soybean meal futures on the market rise rocket.

In less than ten minutes, the price soared 2.3 times, and the uptrend has not stopped.

Other financial investment institutions and speculators, after a moment of consternation, immediately frantically used all kinds of connections to find out the news.

Soon the news that the North American soybean harvest may be out of harvest this year will be known to many institutions.

At this moment, these financial institutions and investors are like sharks and piranhas smelling blood, frantically long soybean and soybean meal futures, and even corn, wheat, and rice futures prices have skyrocketed.

It seems that ABCD, as a big international grain merchant, seems to be very beneficial to them this time when soybean and grain prices have skyrocketed.

But in fact, at this time, ABCD was already vomiting blood.

Because they liquidated their positions.

Due to the fact that there are too many highly leveraged short positions in soybean and soybean meal futures, the bottom line for its price volatility is that soybeans will rise by a maximum of 15%, and now soybean futures prices have soared to nearly 300%.

They don't blow up? Who is liquidating?

Within ten minutes, ABCD lost tens of billions of dollars in the international futures market.

Cargill and Bunge suffered the heaviest losses.

And the more terrible thing is that the delivery period of soybean futures is about to expire next month, and now the futures market holds futures orders, which expire in August and September, with a total of 33.72 million tons.

Regardless of how futures prices fluctuate, ABCD will have to have soybean and soybean meal deliveries at that time.

But the problem is that now North American soybeans are one of the largest regions in the world, and the harvest has been cut out all of a sudden, and South American soybeans and Lucia soybeans have been booked by Chinese buyers.

At that time, ABCD will not be able to deliver 33.72 million tons of soybeans and soybean meal, and will face default.

For example, Luzon purchased 6.3 million tons of soybeans from ABCD through the channels of Heung Kong and Sing Tao, and is ready to diversify its edible oil and feed channels.

The transaction was set at 1.3 times the maximum liquidated damages, at that time the contract was $330 per tonne, and the total contract value was $2.079 billion.

And it's a long-term contract for a supply of 6.3 million tonnes per year for a total of five years.

If it defaults, ABCD will need to pay nearly $600 million in compensation this year.

In addition to this, Homo sapiens has also placed tens of millions of tons of orders with ABCD on the grounds of developing artificial meat, plant protein, feed and biofuels, using several European listed companies.

In other words, this time ABCD can't find enough soybean spots, so they can't get any income in the soybean spot market.

Financial markets are very realistic.

A group of international investment predators will not pay attention to ABCD's hemorrhage, they only care about their own pockets, and even want ABCD to continue to bleed.

The impact of the liquidation is that the futures prices of soybeans and grains have skyrocketed.

At the end of the day.

In the international futures market, the rise of various bulk agricultural commodities was very exaggerated, with soybeans up 327%, soybean meal up 272%, corn up 127%, wheat up 108.3%, and rice up 105.7%.

In the futures market, although ABCD reduced some of its losses through reverse operations, it still lost more than $13.5 billion on the same day.

David's Louis Dreyfus Company, which lost $1.8 billion, fell silent along with the entire futures trading department.

It's tragic.

Louis Dreyfus Company's profit this year is estimated to be only one billion US dollars, and today it has evaporated this year's profit all at once.

"The company has held a board meeting, everyone should be mentally prepared!" David said dejectedly.

……

If Louis Dreyfus Company is a huge loss.

Then ADM, Cargill, and Bunge are hurting their bones.

After all, Louis Dreyfus Company does not have a soybean industry in North America, but it has only been slaughtered in the financial markets.

However, ADM, Cargill, and Bunge have a large number of soybean farms, oil mills, feed mills, and plant protein extraction plants in North America.

The executives and boards of directors of the three companies held emergency meetings overnight.

Cargill, which is not listed, is a little better, at least it doesn't need to explain the situation to stock market investors, but they also lose a lot.

Cargill's chairman, William Wallace Cargill, looked at President Vader, and his eyes were about to burst into flames: "Tell me how much money you lost?" ”

“4…… 4.3 billion ......" Vader's voice trembled.

Bang! Little William slammed his fist on the oak table, his face was like a piece of pig's liver, and he roared madly: "4.3 billion! What is the company's profit this year? In addition, the contract expires in August and September, how are you going to solve it? ”

"Chairman, I have no choice, no one thought that there would be a sudden outbreak of such a serious soybean downy mildew." Vader obviously didn't want to carry this black cauldron.

William's face turned even redder: "I want to listen to how you solve the problem and reduce the loss, not to listen to you arguing, understand?" ”

The executives were like ostriches, looking down at the documents in their hands, and no one had the idea of making a sound.

None of the people present are fools, with such a big loss and yield gap, they don't know magic, even if they replant now, it's too late.

Cargill's soybean stocks in North America are 15.37 million tons and South America are 12.39 million tons, which are to be delivered to customers or the company's own factories.

Of course, there is another way now, which is to snap up soybeans from Eastern Europe and Lucia and use this part of the soybeans to deliver to customers.

It's just that now the spot price of soybeans has exceeded 530 US dollars per ton, and it is better to directly compensate for liquidated damages if purchased at this price.

This is one of the reasons why the executives present did not dare to speak out, and the problem was obvious, either to purchase soybeans from other regions to fill the gap, or to directly compensate customers for breach of contract.

William Jr. felt tired.

Suddenly, President Vader thought of a solution: "Chairman, maybe we can make up for it from somewhere else." ”

"What's the solution?" Little William hurriedly asked.

Vader explained: "Do you remember the food war in Luzon? I don't think Luzon's grain stocks will exceed 5 million tons, and with the continuous crackdown in these two quarters, their domestic rice and corn acreage has decreased a lot, and now I feel that I can launch an attack in advance. ”

"Luzon? Grain? Isn't it planned to start next year? William Jr. clearly knew the details of the plan.

Vader shook his head: "It's too late next year, and now the international rice price is out of control, although the effect of starting it in advance will be worse, but we can't do it now!" ”

After thinking about it for a while, William Jr. also found a problem.

In the past, ABCD has maintained a low-price dumping strategy in order to suppress international rice prices, but now the soybean thunderstorm has caused a chain reaction to the entire grain market.

After all, soybeans are an important raw material for edible oil and feed, and once prices soar, buyers will naturally look for alternative products.

This, in turn, will lead to higher prices of rapeseed oil, sunflower oil, palm oil, corn, wheat and rice.

This invisibly undermines ABCD's low-price rice strategy.

If it is not launched now, as long as Luzon is guided a little, its rice planting area will rise again, resulting in the previous layout being wasted.

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(End of chapter)