From: Jeffrey M Matusow To: Jeffrey Epstein <[email protected]> Subject: Corn and Wheat Date: Thu, 12 Aug 2010 14:21:35 +0000 Attachments: JPM_August_USDA_WASDE_Review_2010-08-12_458178.pdf Inline-Images: ATTOOOO1..jpg The USDA released updated supply/demand forecasts for the grains this morning. For corn, higher supplies were offset by increase in demand. We still believe that the supply/demand dynamics are very tight and susceptible to any supply shocks. Corn is up a point on the news. On Wheat, we still think that domestic inventories are high enough to cushion the supply disruption from the Russian drought. We are buying puts on Wheat to pair with our long Corn exposure. What do you think? Jeff Jeffrey M. Matusow JPMorgan Private Bank 140 West 57th Street, 33rd Floor, New York, NY 10019 Work: I Fax: I Email: IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. Commodities Research EFTA00734410