Chapter 404: Squeeze Out Su Xiaodou 602: No Investigation, No Right to Speak!

Li Xiaofan and a group of old classmates had supper at the seafood stall at Baisha Wharf in Jiangbei, and they drank the store's homemade bayberry liquor.

Mingzhou is a nationally renowned bayberry producing area. When fresh bayberries are on the market in mid-June every year, almost every household has the habit of soaking bayberry liquor because the shelf life of bayberries is very short. According to the records in Compendium of Materia Medica, bayberry liquor has the effects of relieving heat, stopping diarrhea, and aiding digestion.

But after the liquor is soaked with bayberries, the accuracy of the liquor will be significantly reduced.

After eating supper, seeing that everyone still felt unsatisfied, Li Xiaofan invited everyone to the Night Bar near the Drum Tower to continue drinking foreign liquor.

After sitting down at the Night Bar, Zhu Junda suggested that they first have a dozen local "Daliangshan" beers to rinse their mouths.

When everyone was drinking beer and "rinsing their mouths", Li Xiaofan helped everyone order the most expensive "Remy Martin Special Cognac VSOP" 1288 VIP set meal in the bar. In addition to the drinks, the bar also sent a lot of snacks such as fruit plates, chicken feet, edamame and duck tongues.

After ordering the most expensive 1288 VIP set meal in the bar, two young girls who were promoting drinks came to the door to drink and chat with everyone.

When these beautiful girls came, the atmosphere in the box was immediately different, and everyone was excited.

So, Yangmei Shaojiu + beer + foreign wine, after the "three kinds of meetings", Li Xiaofan saw that Lu Jiehui's eyes were erratic, probably a little drunk.

"Ah Hui, after the 327 treasury bonds, you did well in futures, why did you suddenly switch to the stock market this year?" Li Xiaofan handed him a cigar and asked.

Lu Jiehui took the cigar, lit it, took a puff, and asked, "Afan, do you know the 9602 red bean futures contract of the Suzhou Exchange?"

"I have heard of it..."

Li Xiaofan also did futures for a period of time after returning to China in his previous life. Although he had never operated the 9602 red bean futures variety, he knew that it was one of the ten famous futures forced warehouse incidents in China, but he was not very clear about the specific process.

At that time, red beans were a kind of small grain with high protein, low fat and multiple nutrients, and the planting area in the world was relatively small. At that time, mainland China was the country with the largest planting area and the largest output of red beans in the world, with an annual output of more than 300,000 tons, a considerable part of which was exported to Japan, South Korea and Southeast Asian countries.

At that time, Japan was the world's largest consumer of red beans, with an annual consumption of about 120,000 tons, while its annual domestic production was only 60,000 tons. It needed to import a large amount of red beans every year, and most of the imported red beans came from China. Therefore, Japan's import volume played a significant role in the price trend of red beans in the Chinese market.

However, the production of red beans is greatly affected by natural conditions, climate change and domestic and foreign market demand, and its international market price fluctuates frequently. Therefore, since the early 1990s, China has begun to learn about the red bean futures contracts of the Tokyo Grain Exchange in Japan, exploring how to use red bean futures trading to serve production and circulation. Eight exchanges, including Beijing, Shanghai, Dalian, Changchun, and Hainan, have launched red bean futures trading, among which Tianjin United Exchange and Suzhou Exchange are the most active.

After the launch of this red bean futures variety, due to large price fluctuations, high trading frequency and turnover rate, various institutions and large households have gathered together. Although there are big sharks behind the scenes, the water is deep and the fish are fat, and the cake is big enough, so it is a more preferred trading target for sly "speculators" like Lu Jiehui.

"Since the second half of last year, my group of brothers and I have mainly been doing Suzhou red bean contracts..." Lu Jiehui said after taking a sip of Daliangshan beer.

"So did you make money on this red bean contract?" Li Xiaofan asked.

"At the beginning, it was really profitable. We followed the main long positions and squeezed out the short positions perfectly!"

"Oh, then why did you conclude that the price of the red bean contract would rise, and why did you firmly go long all the way?" Li Xiaofan asked curiously.

Taking advantage of the wine, Lu Jiehui took a big puff of his cigar and told the story:

"Suzhou Exchange officially launched the red bean futures contract on Children's Day last year. But it seems that the launch was not at the right time. In the middle of last year, the red bean spot market was sluggish. The Suzhou Red Bean 95 series contract faced huge real-time pressure as soon as it was listed. Warehouse inventory continued to increase, causing the futures price to hit a new low. The 9511 red bean contract once hit a low of 1,640 yuan per ton..."

Lu Jiehui continued:

"Before, my brothers and I were playing the corn futures contract of the Dalian Commodity Exchange, but this contract was too affected by the amount of corn imported from the United States related to the Sino-US intellectual property negotiations. The market was difficult to control. We had some losses and some gains at that time, with a slight Profit. When the red bean contract of the Suzhou Exchange hit a new low, we targeted it! "

Li Xiaofan asked: "With so many domestic exchanges and futures products, why did you only target the red bean variety of the Suzhou Exchange?"

"When the 9511 red bean contract of the Suzhou Exchange hit a new low, we immediately went to some major red bean producing areas in Tianjin, Hebei, Shanxi and Shaanxi to conduct research. We found that the main variety of red beans exported to Japan is Zhushahong, also known as Tianjin red beans. Because the price of red beans was relatively good in the past two years, the domestic red bean production was good last year, but Japan's imports from my country suddenly decreased a lot last year, causing the domestic red bean market to suffer setbacks and prices began to slump..."

"Then what happened? "

"We visited some production areas such as Tianjin and Hebei and found that due to the low market price of red adzuki beans, many production areas began to reduce the production of red adzuki beans. Then we visited the agricultural department and food industry experts and found that due to the low price of red adzuki beans After the price slumped back, its price/performance ratio was reflected domestically. The food industry has begun to vigorously promote red adzuki beans, a nutritious small grain. Experts say that eating red adzuki beans has many effects. It can eliminate edema, detoxify and expel pus, reduce blood pressure and lipids, and relieve constipation. It is rich in B vitamins. Therefore, the economic value of red adzuki beans ranks first among all cereals, and is known as the 'golden bean'..."

"So, you started to do more red bean varieties?"

"Yes, Affan, you were right! After our research last year, we concluded that the downturn in red adzuki bean prices is temporary. Japan's demand for our domestic high-quality red adzuki beans is still there. After many domestic production areas reduced production, It will inevitably lead to an increase in the price of red adzuki beans next year. And we found in our research that the price of red adzuki beans in our country will increase. Due to the sluggish market price, many smart Japanese manufacturers have begun to invest and build factories in our country, renting existing factories, and plan to process and produce red adzuki bean paste in China and export it directly to Japan. It is expected that after the completion of the production in the second year, the annual red bean consumption will be 4. - About 50,000 tons. During our harvest last year, the total output of red adzuki beans in the country was only about 300,000 tons.”

"Therefore, we judge that after the production of red adzuki beans in various red bean producing areas in my country was reduced last year, when the Japanese adzuki bean processing plant in our mainland is completed and put into operation this year, and the country begins to vigorously promote the consumption of red adzuki beans, a nutritious small grain, the red adzuki beans will inevitably be reduced. The price has risen again, so after careful research, we brothers decided to go all-in on the Suzhou red bean futures contract and go long!”