Chapter 779 - 779 687 Sugarcane Franc Goes Live

Chapter 779: Chapter 687: Sugarcane Franc Goes Live Chapter 779: Chapter 687: Sugarcane Franc Goes Live All sugar traders, even speculators who had never dealt in sugar before, immediately rushed in like sharks smelling blood.

Soon, a wooden board about three people tall on the west side of the trading hall bore the first contract, hung by the exchange’s staff.

It was a cane sugar contract maturing in a month, quoted at 1 franc and 8 sous per pound.

According to the rules of the exchange, the “trading unit” for cane sugar was 10,000 pounds. This meant that the buyer could get 10,000 pounds of cane sugar spot within one month at a price of 180,000 francs.

Since the Dutch had created futures trading to sell tulips quite some time ago, followed by small-scale futures markets in England and Holland, people were very familiar with futures trading.

Consequently, all the merchants present immediately widened their eyes.

After the monetary reform in France, 1 franc was equal to 10 sous. Therefore, a price of 1 franc and 8 sous was almost a 30% increase over the current market price for cane sugar!

However, a middle-aged man with small eyes wearing a felt hat immediately walked to the trading counter, pointing at the contract priced at 1 franc and 8 sous, expressing in broken French that he wanted to buy it.

The crowd around him immediately let out a gasp, “This price is just kidding!”

“Has he gone mad? Sugar only rose by 40% in the last six months, does he think it will rise by 28% in just a month?!”

“Oh, this poor man, he will lose everything…”

Afterward, the second contract was hung.

Before the small-eyed man could make an offer, an elderly man already waiting by another counter quickly devoured it.

The third one was hung.

Instantly snapped up.

The fourth, instantly snapped up.

The fifth, instantly snapped up…

The merchants in the hall began to fall into shock.

Could it be none could snatch even a little sugar at a 28% premium?

At last, the middle-aged man with small eyes desperately snatched the eighth contract. The contract price had risen to 1 franc, 8 sous, and 1 denier.

He happily secured the contract and squeezed out of the crowd.

A blue-eyed, broad-nosed young man hurriedly approached him, bowed slightly, and spoke in Dutch, “Mr. Van Schaeck, long time no see. You’re also in Paris?”

Van Schaeck hurriedly smiled and returned the greeting, “Pleased to see you, Mr. Weiger. This is the future for all sugar traders; naturally, I had to come.”

Weiger glanced at the new contract that had just been snapped up, leaned closer, and whispered, “To be honest, I think the price is a bit too high, why would you…”

Van Schaeck hesitated for a moment, pulled him behind a stone pillar in the hall, and spoke in a lower voice, “The Caribbean plantations are ruined. Aside from here,

you’ll find it hard to buy sugar elsewhere.”

Weiger shook his head, “The Caribbean only reduced production; it shouldn’t be that severe, right?”

Van Schaeck looked around and said, “You probably don’t know about the content of the order report from the London company last week.”

The London company was in charge of the Caribbean trade for England.

Every year, before the cane harvest, trading companies would travel to the production areas to survey the market and set purchase prices. And such news could never be hidden from those with connections.

“That, indeed, I haven’t heard.”

“I can tell you, it’s only 35% of last year’s purchase volume. Moreover, most plantation owners indicated that they might not be able to deliver.”

Weiger’s expression immediately changed.

He hadn’t expected the sugar cane shortage to be so severe.

“What about Egypt?”

“It’s said that it was all preordered at high prices by a mysterious buyer.”

Weiger was shocked. “So, does that mean we can only buy beet sugar from France?”

The affair of French beet sugar production had been widely publicized a few months ago, as it was meant for mass sales and its origin couldn’t be concealed.

Van Schaeck spread his hands: “That’s probably the case. If I hadn’t been short on funds, I would have bought more contracts today. I estimate that cane sugar will rise to 2 francs a pound in a month.”

Weiger hurriedly looked up at the board displaying contracts, only to see that the latest contract price had already risen to 1 franc, 8 sous, and 2 deniers.

He hastily bid farewell to Van Schaeck and frantically shoved his way towards the trading counter.

The trading hall soon turned into a battlefield, with shouts and curses mingled together, and people even started fighting over contracts.

Weiger, having his clothes torn in the fray, finally managed to snatch a contract, excitedly tucked it away, and went to continue his quest when he suddenly heard someone shouting behind him, “Breaking news! The Dutch government announces official recognition of the Saint Domingue Republic!”

The crowd quieted for a moment before frantically surging towards the trading counter, not even looking at the prices anymore, just buying any available contract!

Clearly, the Saint Domingo Council must have implemented a sugar embargo, and only countries recognizing its government could purchase cane sugar.

By recognizing them, the Dutch government had essentially bowed down to the black revolutionaries!

In fact, for Holland, since Saint Domingue was a French colony, recognizing its independence was just an extension of that fact, particularly given the current ordinary relations between Holland and France and since the French Expeditionary Army had already lost twice there.

However, the British Army was now fiercely battling the black government there. Holland’s move was tantamount to selling out a British ally.

But now, whoever could buy sugar would earn huge profits.

So, for now, allies were hardly a concern.

A new contract was hung, startlingly priced at 2 francs a pound!

Almost simultaneously, several counters on the west side of the exchange were smashed, traders sitting behind them injured, emitting heart-wrenching screams…

“An incident of violence at the exchange? 27 seriously injured?” Joseph had not yet returned to the Palace of Versailles when he received the report from the Chief of Police Headquarters, Besancon, in the carriage.

The latter nodded nervously, “Yes, Your Highness, plus more than 60 lightly injured. It was all due to poor handling on my part…”

After Joseph inquired about the details, he simply reprimanded him a few times and instructed him to quickly coordinate with the exchange for damage control. After all, he had also seen that the police force at the exchange was not weak.

Once Besancon left, Joseph narrowed his eyes and muttered to himself, “I didn’t expect the Dutch to be so greedy. I haven’t even recognized the black government, yet they’ve jumped ahead.

“But this is good, the incident stirred even more demand for cane sugar.

“Let’s advance that plan ahead of schedule then.”

The next day.

The Paris Agricultural Futures Exchange resumed trading after a temporary suspension due to the brawl.

As the crowd surged into the hall, they first saw that the number of police had at least doubled, and then they saw the exchange supervisor standing on the newly repaired counter, loudly announcing, “From today onward, those purchasing contracts in francs will have priority in trading!”

People were immediately stunned.

Given the current fervor in trading, what use was priority in trading?

Without priority, it was virtually impossible to buy a contract!