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From: Jeffrey Epstein <jeevacation@gmail.com> Sent: Thursday, August 12, 2010 5:39 PM To: Jeffrey M Matusow Subject: Re: Corn and Wheat ok On Thu, Aug 12, 2010 at 10:21 AM, Jeff=ey M Matusow > wrote: 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 susceptibl= 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 I 40 West 57th Street, 33rd Floor, New York, NY 10019</=> Work: <mailto Fax: I Emailai " IRS Circular 230 Disclosure: JPMorgan Chase &=mp; 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 cann=t be used, in connection EFTA_R1_01675132 EFTA02531619 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.=/span> </=> Commodities Research August USDA/WASDE Review: A Well Anticipated Report Leaves Market at Ambiguous Juncture i= the Near Term Click here <https://mm.jpmorgan.com/stp/t/c.do?i=2574-3E&u=3Da_p*d_458178.pdf*h_-2tvllkcX,Od%Oa> for the full Note and disclosures. • The USDA updated US and World balance sheet estimates for major agricultu=al commodities in the World Agricultural Supply and Demand Estimate= (WASDE) report at 8:30am (Eastern). • Today's report is important given it presents the first survey-based estimates of new-crop corn and soybean yield prospects. In the event, upward revisions for both crops were largely in keeping w=th pre-report expectations. In the case of corn, larger supplies we=e offset by an increase in export demand; in light of our belief t=at yield will ultimately fall below the USDA's current estimate — and the risk that exports will increase still further — fundamentals remain constructive. The market is not well positioned to withstand a sub-optimal production outcome.=span style="font-size: lOpt;"> • The soybean market witnessed similar revisions, with larger domestic yield prospects offsetting significantly larger export demand. Although 2010/11 US soybean stocks are likely to be more comfort=ble than those faced during the currently concluding 2009/10 season, inventories will not reach formerly bearish estimates, arguing f=r a more neutral price trajectory. • Revisions to US and global wheat forecasts were well anticipated; the USDA chose to make relatively large-scale downward revisions to globa= production and FSU export forecasts this month, bringing officia= estimates in line with private expectations already in the marke=. US exports saw a large-scale increase this month in consequence,=but it is important to note that domestic inventories remain large relative to the bullish level witnessed in 2007/08. Lewis A Hagedorn<=span> <http://www.morganmarkets.com/analyst/1939632> JPMorgan Chase Bank NA 2 EFTA_R1_01675133 EFTA02531620 If you no longer wish to receive these e-mails then cli=k here to unsubscribe <=pan style="color: rgb(78, 138, 190);">www.morganmarkets.com <http://www.morganmarkets.com> </=> The research analyst(s) denoted by an "AC" on the cover of this report (or, where multiple research analysts are primarily responsibl= for this report or sections within, the research analyst(s) denoted b= an "AC" on the cover or within the document) certifies, with r=spect to each security or issuer that the research analyst covers in this research, that: (1) all of the views expressed in this report accurat=ly reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part of any of the research analyst=#39;s compensation was, is, or will be directly or indirectly related to th= specific recommendations or views expressed by the research analyst(s= in this report. Important disclosures, including price charts, related to the companies recomme=ded in this report are available in the PDF attachment, through the searc= function on J.P. Morgan's website https://mm.jpmorgan.com/disclosu=es/company <https://mm.jpmorgan.=om/disclosures/company> , or by calling this toll free number (1-800-477-0406). Confidentiality and Security Notice: This transmission may contain information that i= privileged, confidential, legally privileged, and/or exempt from disclosure under applicable law. If you are not the intended recipien=, you are hereby notified that any disclosure, copying, distribution, o= use of the information contained herein (including any reliance there=n) is STRICTLY PROHIBITED. Although this transmission and any attachment= are believed to be free of any virus or other defect that might affec= any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and n= responsibility is accepted by JPMorgan Chase & Co., its subsidiar=es and affiliates, as applicable, for any loss or damage arising in any =ay from its use. If you received this transmission in error, please immediately contact the sender and destroy the material in its entire=y, whether in electronic or hard copy format. <=pan style="color: windowtext;"> This email is confidential and subject to important disclaimers and conditi=ns including on offers for the purchase or sale of securities, accuracy an= completeness of information, viruses, confidentiality, legal privilege, a=d legal entity disclaimers, available at http://www.jpmorgan.com/pages/=isclosures/email <http://www.jpmorgan.co=/pages/disclosures/email> . The information containe= in this communication is confidential, may be attorney-client privileg=d, may constitute inside information, and is intended only for the use of the a=dressee. It is the property of Jeffrey Epstein Unauthorized use, di=closure or copying of this communication or any part thereof is strictl= prohibited and may be unlawful. If you 3 EFTA_R1_01675134 EFTA02531621 have received this communication in error, p=ease notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, and destroy thi= communication and all copies thereof, including all attachments. 4 EFTA_R1_01675135 EFTA02531622