I am farming in the real world

Chapter 158: The MC Player Targeting US Soybeans (Thanks to Warm Sun, the Great Lord, for the Silver Alliance Reward!)

These gentlemen were dressed very casually and appropriately, either wearing Ralph Lauren or Zegna polo shirts, or sporting classic Rolex watches, clearly regulars in the VIP rooms of futures brokerages.

Having spent years navigating the futures market, even if they hadn't traded CBOT soybeans, they understood the basics.

There were people who could pull out 5 billion in cash to trade futures in one go. Super retail investors and private equity big shots were everywhere in Shanghai, often managing hundreds of billions or even trillions.

But those were all seasoned veterans who had been tested by the market, and it was absolutely impossible for a young man like Chen Jue to be one of them!

Even the Bank of China girl who opened the account for Chen Jue was feeling dizzy from the sheer amount of funds.

Just the 400 million in cash lying in the ICBC account was enough to shock these ordinary people for a lifetime.

Not to mention opening a 20x leverage and using 5 billion to leverage up to a 100 billion to trade a niche futures product like CBOT soybeans.

So, after asking twice and confirming that Chen Jue would add more than 5 billion in large sums of money later, this Bank of China girl ran to the innermost office and invited Zheng Yinhua, the vice president of Bank of China in charge of futures, to come out.

This scene stunned the old-timers in the VIP room who were frequently glancing over!

"My God! President Zheng came out in person?"

"What's the background of this kid?"

"His accent doesn't sound like he's from Shanghai, more like from Zhejiang!"

"This is a real rich person!"

The old-timers watching the market sighed one after another.

Don't be fooled by their glamorous appearances. They come and go in this high-end VIP room every day, and when the market is good, they can earn an ordinary person's lifetime income with a few clicks.

But in reality, these people are at most high-income families in Shanghai with net assets of tens of millions, not even close to being billionaires.

Every day when they come to this VIP room, they have to take the initiative to greet President Zheng before they can chat with him for a few words.

Unlike Chen Jue, who just came to open an account, sat casually on the sofa, crossed his legs, and had an air of nonchalance that even the president came out to receive him personally.

This gap in status, like a chasm, made these old-timers' teeth itch with envy.

…

"President Chen is really young and promising! Recently, Fang Kuai Technology and Chen Ji have become famous on the Internet. I occasionally pay attention to current affairs news after get off work, and I have also seen a lot of reports about your company!"

Zheng Yinhua did some preparation work before coming out to receive him. After getting Chen Jue's account opening information, he immediately recognized the origin of this young rich man.

Knowing that the young man in front of him was not a second-generation heir from a wealthy family in Shanghai, but a genuine leader among the first-generation entrepreneurs in Wenzhou, with publicly announced assets reaching several billion.

Such a high-quality big customer was worth his personal visit.

Chen Jue shook hands with him: "President Zheng is too polite. I heard Brother Xiang Qingshan mention that your futures services at Bank of China in Shanghai are good, so I came to open an account and play around."

Zheng Yinhua was immediately surprised and asked: "Xiang Qingshan? Is that Chairman Xiang of Qingshan Holdings?"

As a major player in nickel futures, Qingshan Holdings is a super big customer of Bank of China Futures.

The 'Nickel Market War' a few years ago caused a sensation. It was not only the nickel king's credit, but also the operation of a national team like Bank of China.

Otherwise, Xiang Qingshan alone could not withstand the joint strangulation of those greedy Western capitals.

Chen Jue nodded: "Brother Xiang and I are from the same hometown, and we have a lot of business dealings. He recommended me to open an account at your Bank of China. President Zheng, could you please introduce me to the recent market conditions of CBOT soybeans?"

Zheng Yinhua immediately became energetic when he heard this: "Of course, no problem!"

In his opinion, since President Chen of Fang Kuai Technology has a friendship with domestic giants like Qingshan Holdings, his net worth must have been underestimated online.

Thinking of the customer manager's report that Chen Jue planned to enter the market with 5 billion funds as soon as he opened an account, Zheng Yinhua explained the market conditions of CBOT soybean futures, including the trading rules, to Chen Jue in detail.

Because compared to popular commodities such as gold and crude oil, which are often seen in the news, soybean futures are very unfamiliar to ordinary people.

Taking CBOT soybeans, that is, the futures soybeans of the Chicago Board of Trade, as an example, it has two types of contracts, large and small. International soybean futures players generally refer to it as US soybeans.

Unlike domestic soybeans No. 1 and No. 2, which are traded in 'tons/yuan/lot', US soybean futures are denominated in 'bushels/cents/lot'.

The large contract for US soybeans is 5,000 bushels per lot, and the price of 1 bushel of US soybeans has recently fluctuated around 1,000 cents (1 bushel = 27.216 kg in China).

Converted into tons, the total amount of futures for 1 lot of US soybeans is equal to 136 tons of soybeans, and the total contract price is 50,000 US dollars.

According to the 20x leverage driven by a 5% margin, Chen Jue's 5 billion red ticket cash can theoretically purchase 14,000 lots of US soybean large contract long/short options.

In addition, with the T0 trading rules of international futures, as long as the recent rise and fall of US soybeans does not exceed 5%, Chen Jue can hold these 14,000 lots for a long time until he actively closes the position.

The rules are not complicated. It depends on how Chen Jue chooses to short or buy long.

According to the suggestion of the futures expert President Zheng, recently, due to the abundant global supply and the outbreak of soybean production in South America and North America, the market supply exceeds demand, and the trading price of US soybean futures has been steadily declining.

If Chen Jue enters the market at this time, he can try to short it.

Because the general trend of the market is like this, US soybeans have fallen from the high of 1300 in the past few years to the current 1000 or so.

"Shorting?"

"Okay! Then I'll go back and prepare the funds, and wait for the bullets to be in place before entering the market for a round."

After Chen Jue understood the details, he added President Zheng's WeChat and made a verbal agreement. By the way, he injected the funds from the ICBC account into the Bank of China Futures account.

"President Chen, the scale of 5 billion funds is not small! You have to consider carefully after you go back! Because once this scale of funds enters the market, it will definitely be the target of siege by the capital hunters in the United States." Zheng Yinhua reminded him earnestly.

Because the essence of futures is a gamble. The long/short sides are on the opposite side.

One side profits, and the other side loses money.

In the past few years, domestic capital went overseas to invest randomly, and was harvested by those Western capitals a lot.

In fact, after deeply understanding the 'Nickel Market War' case of Qingshan Holdings, Chen Jue did not intend to formally enter the market to trade US soybean futures.

Instead, he plans to use his spot soybeans to **** a wave of blood from the US soybean futures market, completely blow up US soybeans, and fill the problem of his cash flow shortage.

You must know that according to the data released by the Chicago Board of Trade, the total open interest in the entire US soybean market recently is about 370,000 lots, with a total weight of about 50 million tons.

But these 50 million tons of US soybeans are just paper data, just like paper gold, it is just a virtual value, which is an estimate of the total production capacity of US soybeans in the near future.

In fact, the deliverable soybean inventory of the Chicago Board of Trade is only about 3.5 million bushels per week, that is, 94,000 tons of real spot soybeans produced within a week.

Because soybeans are not easy to store on a large scale, once the spot goods are harvested from the ground, they are basically chartered by big buyers like China and sent across the ocean to domestic grain and oil companies for deep processing, oil extraction, and feed making.

There is no second buyer in the world like China, with an annual import volume of 100 million tons.

Such an imbalanced supply and demand relationship, and the data difference between US soybean futures and spot goods, gives Chen Jue a lot of arbitrage space.

"94,000 tons of spot goods a week, isn't that just running 10,000-ton bulk cargo ships to the port every week?"

"As long as the domestic buyers of US soybeans are cut off at the source, this kind of unlimited spot trading outside the market will be a trick. Isn't it the same as manipulating stocks and being a dealer, arbitrarily sending insider news to smash the market and pull up the market?"

Chen Jue began to calculate in his heart.

Because he already foresaw that once he really set foot in US soybean futures, he would continuously draw cash flow from it for the several companies under his command.

After all, as the only MC player, Chen Jue, who has almost unlimited soybean production capacity, is fully capable of fighting against US soybeans and the Western capital groups behind US soybeans by his own strength!

However, if you want to enter the market and drastically blow up US soybeans, you still have to rely on the futures national team such as Bank of China to cooperate.

Otherwise, if you smash the market and pull up the market indiscriminately, it is easy to harm your teammates and innocent domestic soybean growers.

So, after completing the account opening and charging 400 million red ticket cash into the account like happy beans, Chen Jue quietly pulled President Zheng over, lowered his voice, and teased him mysteriously in his ear: "Lao Zheng, do you want to avenge 'Crude Oil Treasure' from the Chicago Board of Trade?"

Second update today~ Thanks again to Warm Sun, the Great Lord, for the Silver Alliance!