Agricultural giant since 1983

Chapter 16 Palm Oil Futures

Today's general environment is still relatively sensitive to high income, and the security situation is not good. If people know that they have earned so much money, there may be some unnecessary troubles, so let's use a pseudonym.

Xie Liren has been in the special zone for two or three years, and he quickly understood Li Lei's scruples, and what name he used would not affect the propaganda effect, so he agreed.

"Okay, I'll call a meeting with the propaganda department as soon as I get to work tomorrow, come up with a suitable plan, and then contact the reporter to report; Xiao Li, you helped me again!"

"Mutual benefit, actually, I also have something to ask Mr. Xie for help." Li Lei opened another bottle of pineapple beer and poured it for them.

"What's the matter? Just ask, as long as I can help, there is absolutely no problem!" Xie Liren was very straightforward.

"I think CP Group should have a futures hedging business?" Li Lei asked.

Whether it is an enterprise that provides agricultural and sideline products to the market, or an enterprise that provides basic raw materials such as copper, tin, lead, and petroleum to the market.

As a supplier of social goods, in order to ensure the reasonable economic profit of the goods that have been produced and ready to be supplied to the market or are still in the process of production and will be sold to the market in the future, in order to prevent losses caused by the possible decline in prices when they are officially sold, they often use The trading method of selling futures to reduce price risk.

Before Li Lei’s crossing, the Tsingshan Nickel incident, which caused a lot of noise, fell into this type of operation. Tsingshan Group, as a major customer of Russian nickel mines, adopted a hedging transaction in London to issue 20 tons of nickel air in order to reduce contract risks brought about by price fluctuations. single, this is normal operation.

In this way, even if there are price fluctuations in the future, you can minimize your risk, but you didn't expect to encounter a corner.

In addition to futures hedging, there are various financial means to reduce the risks faced by production enterprises.

Of course, these financial means are not a panacea.

For example, say you are a car owner and you have a premonition that fuel prices will increase, so you think of using financial means to reduce your losses.

You think that if the oil price rises, the stock price of PetroChina will definitely rise, so you buy PetroChina stocks, thinking that the losses from the rise in oil prices can be recovered from the stock market; this kind of thinking is logically correct, but in reality, then Only hehe.

Chia Tai Group is one of the largest large-scale agricultural groups in Southeast Asia and the world's top. Naturally, similar operations are indispensable, and Xie Liren quickly admitted this.

"In this case, can you ask Mr. Xie to help me put my bonus into the futures market, I want to do some operations!" Li Lei clearly remembers that this year's Southeast Asian futures market has a good opportunity to make money. There is no way to operate it at all, so I can only ask Xie Liren for help.

"I can help with this matter, just call the futures department, but Xiao Li, I must remind you that the futures market is very risky, and your 2 yuan invested in it is easy to go in vain! Be careful!" Xie Liren kindly reminded.

"I know, but I am very confident about this operation." The futures market has its own leverage, and the returns are huge, and the risks are huge. If you are not careful, you will lose everything. Naturally, ordinary people should be cautious, but Li Lei has plug-ins.

Compilation of "Agricultural History of New China" requires not only reference to domestic materials, but also relevant materials in the international agricultural field. The futures turmoil in the Southeast Asian market this time is a very famous event. He spent a lot of thought on research. The data is remembered clearly.

This is equivalent to knowing the result in advance, and only invested a mere 2 yuan, which will not attract the attention of predators at all, so why worry about it?
In order to dispel Xie Liren's worries, Li Lei added, "If this venture succeeds, then I will have the capital to start a business; if it fails, I will come to work for Mr. Xie. Presumably Mr. Xie will not refuse, right?"

"Haha, now I don't know whether to expect you to succeed or fail!" Xie Liren smiled, "Okay, I promise you, I will call the futures department tomorrow, and I will pay for your 2 yuan." Convert it into US dollars according to the official exchange rate, and help you invest in the futures market.”

Xie Liren also gave Li Lei a lot of benefits. Now the official exchange rate is 1 yuan for 1.9757 US dollar, but on the black market, it takes 1 to [-] yuan to exchange for [-] US dollar, sometimes as high as [-] to [-]. Xie Liren In a word, Li Lei's capital has doubled several times.

"So what kind of futures do you want? Rice? Rubber? Or?" Xie Liren asked, these are the most common items in the futures market in Southeast Asia.

"Palm oil! I want to buy long palm oil futures in Malaysia." Li Lei replied without hesitation.

Buying more refers to predicting that the price of Malaysian palm oil will rise in the future, so borrow funds to buy at the current stage, and then sell the palm oil you bought in advance when the price rises in the future, so that not only can you repay the debt, You can also earn the difference.

It is currently the vegetable oil variety with the largest production, consumption and international trade volume in the world. It accounts for more than 30% of the world's total oil production. It is also called "the world's three major vegetable oils" together with soybean oil and rapeseed oil.

It is pressed from the palm fruit on the oil palm tree. Because the oil palm tree has the advantages of easy management, economic cycle of up to 20 years, and large oil production per plant, the price of palm oil is relatively low. It is used in the catering industry, food It has great advantages in many fields such as industry.

The most common one is instant noodles. The vast majority of instant noodles on the market are fried with palm oil. If it is replaced with other oils, instant noodles will definitely not be so cheap.

Malaysia and Indonesia are the world's major palm oil producers, accounting for more than 80% of global palm oil production.

"Malaysian palm oil?" Chia Tai Group also has a palm oil business. Xie Liren recalled the recent market data, "Since last year, the price of palm oil in Malaysia has been rising all the way, from 650 ringgits per ton to 730 ringgits. Ringgit/ton, with an increase of more than [-]%, I am afraid there is not much room for further increase, right?"

Today, the exchange rate of Malaysian ringgit to US dollar is almost three to one, so the price of palm oil has reached more than 260 US dollars per ton. Compared with last year, this price is not low, so Xie Liren is very cautious and wants to persuade Li Lei to give up.

Li Lei shook his head with a smile, "Where is this? The price of palm oil will definitely continue to rise this year, and it will rise to an unprecedented height! Now is the right time to enter the market."

(End of this chapter)