Chapter 290 Furious

At the food procurement meeting in Shanghai.

A vice president of COFCO Group arrived late.

Some of the middle-aged people who have gained weight smiled like a Maitreya Buddha and said, “I’m sorry to have kept you waiting for so long. I encountered something on the way and was delayed for a while.”

Through translators or translators, Omar, Habib and others naturally did not dare to express any dissatisfaction.

After some pleasantries, the vice president smiled and said, “Are you interested in our newly launched complete nutritional soybeans?”

Omar, who couldn’t wait any longer, stepped forward and said, “Mr. Wang, our Egyptian Grain Procurement and Trading Company needs a batch of fully nutritious soybeans, but I hope the price can be more favorable. After all, our Huayuan reserves are limited.”

Wang Guozhang smiled and said, “Since Manager Omar is interested, then go to Hall 3 to discuss with our professionals! The price is negotiable.”

“Then let’s go first.” Omar nodded slightly.

“please!”

Led by the staff, Omar and his party came to Hall 3. As soon as they entered the small hall, the staff quickly drew a curtain, and two professional security personnel stood at the door to prevent anyone from approaching.

The small hall is equipped with special tables and chairs, as well as a toilet and two more enclosed small meeting rooms, which also provide a reasonable negotiation venue and internal discussion area for both parties.

The team leader in charge of the negotiations was a tall, thin, middle-aged man wearing glasses. He stood up and extended his hand to Omar: “Hello, Manager Omar, I am Li Wenmo, the team leader in charge of this business negotiation.”

“Hello! Team Leader Li, it’s a great honor to meet you.” Omar spoke in Arabic, and the translators on both sides quickly translated simultaneously.

“Please take a seat.”

“the same as you.”

After both parties took their seats one by one.

Omar didn’t talk nonsense, but got straight to the point: “Team Leader Li, Egypt’s food shortage this year may be around 1200 million tons. I wonder if your company can provide it?”

Team leader Li asked calmly, “Is it wheat, corn, or fully nutritious soybeans?”

“Both wheat and whole-nutrition soybeans are fine, but considering the acceptance of our domestic people, we plan not to purchase too much whole-nutrition soybeans this year. I hope you can understand.”

“I understand. What is the specific purchase quantity?”

“100 million tons of complete nutritional soybeans and 1100 million tons of flour wheat, what is your company’s price?”

Team leader Li replied very calmly: “Soybeans are 3100 yuan per ton, and flour wheat is 2800 yuan per ton.”

When Omar heard the price, he felt it was acceptable. He turned around and discussed it in a low voice with Ali and others for a while.

Currently, international food prices are soaring, and the landed price of wheat per ton has basically reached around US$650. According to the current exchange rate, it is about 4420 Chinese yuan per ton.

It’s not that the price difference between the two is really 1600 yuan, but the price given by COFCO Group now is the ex-factory price, which is not the same as the landed price. The landed price needs to add transportation costs, tariffs, etc., and the price will increase by about 500 to 700 yuan.

The remaining price difference is actually the result of the current crazy depreciation of the US dollar.

In order to maintain its financial system, America has been frantically injecting money for several years, especially since the second half of last year, the scale of injection has been like a dam bursting.

At the same time, this price difference is also fueled by many European and American agricultural giants, who are trying to reap the benefits in this way.

It’s a pity that these guys did not anticipate that their greedy behavior would become the last straw that broke the camel’s back for the US dollar’s ​​value system.

Europe and the United States were already struggling in basic industries, and now even agriculture is facing such serious problems, which has suddenly made the whole world lose confidence in the value of the US dollar.

In the past few months, the Huayuan has appreciated wildly. Even though Seris has started to flood the market with money, it still cannot suppress the appreciation of the Huayuan.

After all, if calculated based on the industrial and agricultural value, Seris’s industrial strength is roughly equivalent to about 50% of the world’s total, while its agricultural strength is roughly equivalent to about 30% of the world’s total.

In this case, the reasonable exchange rate of US dollars to Chinese yuan should be around 1:2.

That’s right, it’s about 1:2.

Some economists even said that the exchange rate of the US dollar to the Chinese yuan is around 1:1.

After all, looking at the basic purchasing power of the currencies of both sides, the ratio is indeed similar.

Currently, affected by the collapse of the international credit of the US dollar and US bonds, the value of currencies around the world has actually fluctuated violently.

One of the more serious problems is that many countries that have a large amount of US dollars in reserve are constantly selling US debt in order to reduce losses, while spending as much US dollars as possible.

The problem is that it’s hard to spend US dollars right now.

For example, Omar’s Egyptian Grain Trading Company used US dollars to purchase grain, but the price changed every day. Seeing the US dollars in their hands depreciating day by day, they were heartbroken.

After all, the basis for issuing currency is that the currency must have a certain anchor.

Although the currency of modern countries is often the so-called credit currency, credit currency also needs an anchor.

Otherwise, it is similar to Zimbabwe, which has issued Zimbabwean dollars with denominations of hundreds of millions. Is this money? It is too hard to even wipe your ass.

Since the collapse of the Bretton Woods system, the anchor of the US dollar has changed from the gold dollar to the so-called oil dollar.

However, the oil dollar is essentially a product supported by America’s national and military power.

When America was at its peak, this hegemonic dollar could naturally start the nuclear-powered money printing press and reap the world with impunity.

But once America’s national strength declines and it is unable to maintain its global hegemony, the backlash will be terrible.

After all, the main idea of ​​credit currency is “it works if you believe it, and it doesn’t work if you don’t believe it.”

It is like believing that a piece of paper is worth 1 million tons of steel, and that you can also buy 1 million tons of steel, then the piece of paper is worth 1 million tons of steel.

If a piece of paper is marked as worth 1 million tons of steel, but in reality only 1 ton of steel can be used to buy it, then the actual value of the paper is 1 ton of steel.

Obviously, the US dollar has now reached a dead end. America is trying to make people believe that these green papers can buy everything, but they do not have the ability to produce these things.

How can one believe in the value of these US dollars?
Without the support of developed industry and agriculture, credit currency will be a huge bubble that will burst sooner or later.

Of course, a rotten boat still has three pounds of nails.

Given America’s unique geographical location and vast territory, if it were to restart isolationism, it might still have a chance to survive.

The grain purchase negotiations went very smoothly this time. The grain trading companies from eight participating countries signed a series of cooperation agreements with COFCO, Sinograin, Beidahuang Group and other enterprises. Among them, the Egyptian Grain Trading Company signed a five-year long-term contract, with COFCO and Sinograin providing them with 5 million tons of grain each year.

As for why it did not reach 1200 million tons, the answer is naturally that Egypt still has a lot of US dollar reserves, and they want to spend these US dollar reserves as soon as possible.

Another reason was that in order to avoid monopoly, they still wanted to retain the wheat and corn purchasing channels from Russia and Kievan Rus.

This is also the mainstream practice in many West Asian and North African countries. After all, they are also well aware that all eggs should not be put in one basket.

Only diversified purchasing channels can avoid falling into a passive situation all of a sudden.

After this grain purchasing meeting, major domestic agricultural groups will need to transport large quantities of grain to West Asia and North Africa this year.

This year alone, orders have reached 4628 million tonnes of grain.

However, this sales volume is not really a big problem for Seris at that time.

After all, the planting area of ​​various types of soybeans has exceeded 1.5 million mu this year. Although many soybeans are not edible soybeans but industrial raw materials, their production capacity is still very scary.

If the global climate deteriorates further, the country will definitely increase the promotion of Senzu soybeans, take advantage of the perennial and cold- and drought-resistant characteristics of Senzu soybeans to maintain domestic demand, and then sell a batch at a low price to suppress the surge in international food prices.

And with the announcement of these cooperation agreements.

The prices of various types of grain, sugar and oil in the international bulk agricultural futures market were attacked almost at the same time.

In less than a few hours, the price of wheat fell from more than US$35 per ton to more than US$ per ton, a drop of almost %.

…

América.

new York.

In the meeting room of three international grain traders ABC.

Bang! An old man’s forehead was bulging with veins, and he slammed the table fiercely: “Damn Orientals, what do they want to do?”

The boss behind Company B frowned and said, “Although we stopped the loss in time and didn’t suffer too much, the price of grain in the international market has plummeted and it is difficult to raise it again.”

“Harry, I can’t swallow this. Damn it! Damn it!” The chairman of Company C was also furious.

The calm boss of Company B looked cold, yet with a hint of helplessness: “What’s the use of being angry? Now we should think of a solution as soon as possible!”

A vice president of Company C cautiously suggested, “How about we spend money to buy food from Seres? Consume their food reserves? And then use public opinion to cause global panic?”

“Haha, do you think that’s humorous, Jackson?” The boss of Company B looked at him as if he was crazy.

After all, more than a decade ago, they tried to attack Seris’s food system through large-scale purchases and pressure sales, but ended up in defeat.

Now there are terrible agricultural technology companies like Hailufeng Company in Seres. Even the soybean industry, which once had an advantage, was defeated last year. What can they use to fight now?
If this were to happen, the consequences would surely be disastrous.

Their funds are not endless, and the US dollar is depreciating, which means they have fewer bullets to fire.

Moreover, large-scale procurement of grain requires various negotiations, agreements and procedures, and it is not a game that can be operated casually.

If you make a mistake, you might end up losing more than you gain.

After all, many agricultural groups in Seris now control huge farms and grain reserves at home and abroad, and sometimes grain is not something that the four major grain traders ABCD can buy whenever they want.

For example, Hailufeng is a full-chain enterprise with thousands of stores and more than 200 warehouses and supermarkets. How did ABCD drain Hailufeng’s food reserves? Did they hire thousands of people to go to stores and warehouses and supermarkets every day to purchase?
Hailufeng has close relations with large agricultural groups such as COFCO Group. If ABCD really hires thousands of people to buy grain in stores and supermarkets, Hailufeng can completely purchase grain from COFCO Group, China National Grain and Oils Group, and Beidahuang Group.

The retail prices in stores and supermarkets are already relatively high, and coupled with the cost of hiring staff, as well as the costs of transportation and warehousing, it is estimated that it will take hundreds of billions of US dollars to drain Hailufeng Company’s food reserves.

Obviously, the tactics used by ABCD more than a decade ago had no effect on Hailufeng Company and would have caused it heavy losses.

Moreover, how could hundreds of billions of dollars of funds quickly enter Seris’s internal trading system? This was obviously impossible.

Even with the cooperation of some Southeast Asian agricultural companies, they would not be able to obtain so much funds at once.

If the suddenness is lost, it will probably take several years for hundreds of billions of US dollars to flow into Seris.

Obviously, ABCD does not have several years to waste. The risks are too great. If there is any problem, the whole game will be lost.

Another Mediterranean old man gritted his teeth and said, “There is no other way. Now we can only use the excuse of dumping to prevent Seris’s grain from entering the European and American markets.”

“Okay, I’ll give you 500 million US dollars…”

“not enough.”

“Not enough? Hasn’t it always been this much before?”

“They said the U.S. dollar has depreciated too much recently and the price must at least double before they agreed to help.”

“Damn it!”

The boss of Company B rubbed his temple and sighed, “That’s it! Although we can’t cut the meat of West Asia and North Africa, we must not let Japan and South Korea go.”

“Well, I agree.” The chairman of Company A nodded, and then he sneered: “If you are a dog, you must be aware of being a dog. We, as their masters, are almost starving to death, and they still want to eat meat?”

“Make some arrangements to quiet down those guys who jump higher.” The boss of Company B lit a cigar and began to puff.

A middle-aged man standing behind them said calmly, “I understand. I will make sure they are quiet.”

“Phew! Don’t make it sound like suicide.” The boss of Company B made it sound as light as if he was crushing an ant to death.

“Yes.”

The chairman of Company A said coldly, “Haha, Harry, you are still the same. But those guys are really restless recently. Let’s teach them a lesson and let them know who is the master. Otherwise, no one will think that we can’t beat them anymore.”

“Let’s end today’s meeting here!”

“Goodbye.”

After watching everyone leave one after another, the boss of Company B was still smoking, but his eyes were fixed on a map.

He looked at East Asia with a complicated expression in his eyes: “I never thought that I would be suppressed so miserably by them. However, Amelica is really not doing well. I will arrange for Catherine to go to Seris as the president in a few days.”

(End of this chapter)