The Berkshire Letter: Grain Market Comments

If we can assist your operations with a grain market supply/demand inquiry, please contact:

Edgar Hicks

402.884.0066 x111

Market Comments covers weekly developments from Wed. to Tues.

Market Comments: 3/2/11
Buffett's Yearly Mercantile Guide

The Gulliver's Travels of capitalism came out this weekend and again Mr. Buffett's letter to Berkshire-Hathaway shareholders makes the subject of business an interesting read. Those of us connected to agriculture and husbandry should take special notice of these sections of the letter:

· Capital-Intensive Businesses - page 14

· Derivatives - page 19

· Black-Scholes Option Valuation - page 21 (lower half)

· Life and Debt - page 22

Ruminating on Warren's words is good prep for the theater of price (or risk management) up ahead.

Gas Prices not yet a Significant Risk - Fed Chair

Bernanke warns that, while a prolonged rise in oil prices would pose a threat to the economy, we are more likely to see a brief jump in consumer prices.

Full Article at CattleNetwork.com

We believe positions are unique to each person's risk bearing ability, marketing strategy and crop conditions, therefore we give no blanket recommendations. The risk of loss in trading commodities can be substantial, therefore carefully consider whether such trading is suitable for you in light of your financial condition.