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THE MARKET INSIDER NEWSLETTER

February 18, 2008

By: Brian Hoops, President

Midwest Market Solutions, Inc.

VISIT OUR WEBSITE AT www.midwestmarketsolutions.com FOR MORE INFORMATION.

T H E S U C C E S S F U L M A R K E T E R 2 , 3

C O R N O U T L O O K 4 , 5

S O Y B E A N O U T L O O K 6 , 7

W H E A T O U T L O O K 8 , 9 , 1 0

L I V E C A T T L E O U T L O O K 1 1

F E E D E R C A T T L E O U T L O O K 1 2

L E A N H O G O U T L O O K 1 3

Inside This Issue:

N E W S 1 4

N E W S 1 5 , 1 6

W E A T H E R 1 7

C A L E N D A R O F E V E N T S 1 8 , 1 9

M A R G I N R E Q U I R E M E N T S 2 0

C O M P A N Y I N F O 2 1

D I S C L A I M E R 2 1

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"THE SUCCESSFUL MARKETER"

Today’s farmer is forced to wear many hats. The American farmer must be an agronomist, a seed consultant, a meteorologist, a politican, a veterinarian, an accountant, a repairman, a ma-chinery operator and most importantly a marketer of his produce. Marketing can and should be one of the most important and fun aspects of your farm business. However, being good at mar-keting and having fun at it, requires a thorough understanding of the process. It also means a lot of hard work and a lot of time. Good marketing can mean the difference between a mar-ginal farm operation and a very successful one. Not every farm operation has the benefit of having a good marketer making marketing decisions; however through training, hard work or by hiring someone else to help with the marketing process, each operation can improve mar-keting.

1. Keep your marketing simple. Have a marketing plan that is easy to follow and clearly illustrates your marketing goals and objectives. Don’t make it too complicated or hard to follow. 2. Know and understand the fundamentals of the market. Fundamentals are what deter-mines the price of a commodity, not the technicals. You must recognize that fundamen-tals can and will change, however, know the fundamental trend and follow it religiously.

Make Up of Today's Farmer

Machinery Operator

Accountant

VeternarianPolicitanMeterologist

Repairman

Seed Consultant

Agronomist

Marketer

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3. Be willing to use all the various marketing tools that are available. The days of being a cash only marketer are in the past. Today’s best marketers re-fused to be limited to only selling at cash price levels and are successful be-cause of their willingness to use all marketing tools available. This includes; futures, options, insurance products, and different basis and forwarding con-tracting contracts.

4. Know the technical trend of the market. Don’t pay attention to the daily technical activity as you will not be able “to see the forest for the trees” and will succumb to all the noise of the markets. Respect the technical trend and always trade with the trend. 5. Leave your ego somewhere else. Marketing is not about being right or wrong; it is all about being profitable. Admit and expect you will make mis-takes in marketing. Admit the mistakes, learn from them and move on. 6. Know when to forget about last year’s crop and focus on marketing the current year’s crop. It is hard enough to try to market one year’s worth of pro-duction, let alone to market two or more years.

7. Recognize marketing is an art form, not an exact science. It takes a special makeup and a special talent to be good at marketing. If you do not have the mental or emotional makeup, the time or the knowledge to market, hire some-one else to assist you. 8. You can’t outguess the market, so don’t. You will not be perfect in this im-perfect business, but you can be profitable. Use the marketing tools available and your knowledge and you can make money. 9. Use risk management. The farm operation is filled with production risk, weather risk, faulty equipment risk, and other unseen risks, why add to your risk by trying to outsmart the market? There is no other industry in the world

that has more ways of reducing risk than production agriculture, be sure to use these tools to reduce your risk, not increase it. 10. Ask for help. Today’s producer has to be an expert in many areas: produc-tion, seed selection, herbicide and pesticide selection, mechanical and techni-cal proficiencies, tax issues, and accounting and marketing. Today’s top pro-ducers seek professionals in all these areas and more. Don’t be afraid to seek help from a professional in each of these areas, especially in marketing.

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CORN

Corn closed the week 6 3/4 cents higher. This week's export sales report showed 36.7 mb of corn was sold last week, 46% below the four week average. Year to date sales stand at 1.900 billion bushels, 442.2 million bushels above last year. This sales pace is already 77.6% of the projected USDA forecast of 2.450 billion bushels for this marketing year. This year’s sales are now only 225 mb behind last year’s export pace of 2.125 bb. The extreme price volatility should not overshadow the bullish fundamentals of the corn market. Export demand is at the highest level since 1996 and total domestic usage is by far the largest in history. Livestock demand remains strong in the first quarter of 2008 and with the export pace remaining strong; it leaves the USDA little room to reduce the record demand that is forecasted. Unlike last year, corn doesn't need to "buy" acres from another commodity, but rather needs to maintain a price level that will ensure it doesn't "lose" and acres as a loss of acres will mean a reduction in corn ending stocks. Technically, prices remain in an uptrend and there is no evidence yet of the market accomplishing its chore of rationing.

Recommendations:

Hedgers: Sold 30% at $4.10 2007 production. Long March $4.20 calls. Exercise calls on February 22 to offset sales. Buy July puts on 100% of 2007 production on a close below $4.90 July. Buy puts on 100% of 2008 production on a close below $4.84 December. Hedge 10% at $5.70 December. Cash Marketers: Sold 50% of 2007 production at $4.10. Sell 10% of 2008 at $5.70 December. Traders: Buy December 2008 at $5.15.

WEEKLY CORN

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MARCH CORN

DECEMBER CORN

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SOYBEANS

Soybeans closed the week 34 3/4 cents higher. This week's export sales report showed net sales of 12.1 mb were ex-ported which is 58% below the four week average. Year to date soybean sales are 897.6 million bushels, up 15.4 mb from last year. The USDA is currently forecast annual exports at 1.005 bb as they anticipate a slowdown in U.S. exports once South American production becomes available in March. However this year’s export pace has already reached 89% of the USDA projection. Strong commercial buying continues to surface on every price pullback, a strong indicator prices will continue to move higher. The technical action is volatile, however the market’s job is to ensure enough acres are seeded to soybeans this spring to rebuild supplies. Outside of large profit taking swings, I see very limited downside risk for new crop soybeans until the bidding war for acres is over this spring.

Recommendations:

Hedgers: Hedged 40% at $10.02 2007 production. Exercise March $10.20 calls on February 22 to offset hedges. Buy July puts on 100% of remaining 2007 production on a close below $12.20 in the July and buy puts on 100% of 2008 production on a close below $11.67 November. Sell 10% of 2008 at $13.85 November. Cash Marketers: Sold 70% of 2007 production at $11.05. Traders: Buy November at $12.30.

WEEKLY SOYBEANS

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MARCH SOYBEANS

NOVEMBER SOYBEANS

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WHEAT

For the week, Chicago wheat closed 64 1/2 cents lower with Kansas City wheat $.58 1/2 lower and Minneapolis wheat $3.82 higher. Minneapolis wheat has been on an incredible run of late, gaining $4.90 in the last four weeks. The unprecedented volatility of the wheat market has reached a new high this last week, with Minneapolis wheat locking the limit higher for each trading session. This week's export sales report showed net sales of only 3.0 mb and 80% un-der the 4 week average. Year to date sales now stand at 1.146 billion bushels. Year to date sales are now 424.3 mb lar-ger compared to a year ago and are now only 54 mb below the current USDA forecasted export pace for this marketing year of 1.200 billion bushels. The USDA is going to be forced to continue to increase their export forecast in upcom-ing supply/demand reports. Tight world supplies will mandate that near perfect growing conditions develop for winter wheat this spring.

Recommendations:

Hedgers: Hedged 35% of 2008 production at $6.65 Kansas City. Long July $7.50 calls. Exit calls at the market and buy $8.00 puts on 100% of unhedged production if the market closes below the uptrend line. Hedged 20% of July KC at $10.50 and 30% of September Minneapolis $10.90. Cash Marketers: Sold 55% of 2008 production at $8.50 Kansas City. Sold 30% of 2008 spring wheat at $10.90 Min-neapolis. Traders: Stand aside

WEEKLY CHICAGO

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MARCH CHICAGO

JULY CHICAGO

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JULY KANSAS CITY

WEEKLY KANSAS CITY

MARCH MINNEAPOLIS

WEEKLY MINNEAPOLIS

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LIVE CATTLE

Live cattle ended the week $1.35 lower while feeder cattle ended $.40 lower. The cash trade this week was very light, indicating showlists will be carried over to next week. Cash trade occurred late on Friday at $145 to $146, generally $1 to $2 lower than the previous week. Heavy snow storms blanketed the Plains this week, slowing feed conversion rates and telling producers to add extra feed to rations. Supplies should remain plentiful through the spring, challenging the strength of the cash market. Seasonal trends are higher through early March and producers should use any weather in-duced rallies in the next several weeks as a hedging opportunity. Producers will also need to be hedging the deferred contracts once the corn market shows signs of establishing a top. Technical trends continue to trend lower in live cattle market.

Recommendations:

Hedgers: Long 100 puts on 50% of April marketings. Lift puts on a close above $96.10. Hedged 50% of summer mar-keting at $96.50 August. Hedge another 25% at $98.40 August. Hedged 25% of October marketings at $101.50. Cash Marketers: Look to replace feeder cattle on price weakness. Traders: Long April/short June at $1.00 premium April. Use $2.00 stop.

ARPIL LIVE CATTLE

WEEKLY LIVE CATTLE

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ARPIL FEEDER CATTLE

WEEKLY FEEDER CATTLE

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LEAN HOGS

Lean hogs closed the week $.67 lower, under commercial hedge pressure. After a $10 rally off of contract lows that was mostly a short-covering type rally, commercial entities used the rally as a hedging opportunity. Supplies of hogs should remain large through the summer, so look for opportunities to hedge at profitable opportunities. Cash trade has also found a bottom and should continue to remain strong through the Easter holiday on March 30. The lean hog index gained $.61 this week, an indication of the improving cash market. Deferred contracts will continue to find price direction from corn prices as higher feed costs will command deferred contracts main-tain a premium to encourage producers to feed out isoween or feeder pigs. Producers will need to hedge the de-ferred contracts once corn finds its maximum price level.

Recommendations: Hedgers: Hedge 50% of April marketings at $69.45. Hedged 50% of summer marketings at $81.00 August. Cash Marketers: Don’t add extra weight. Traders: Stand aside.

APRIL LEAN HOGS

WEEKLY LEAN HOGS

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NEWS

Thanks to Bloomberg News

*Investments in agricultural-commodity indexes soared to $1.5 billion in the week ended Feb. 5, almost double the previous weekly record, UBS AG said. The figures may ``explain some of the strength seen in commodities across the board last week,'' Robin Bhar, a metals analyst at UBS in London, said in an e-mailed report today. ``We suspect that this is a reflection of broader inflows into commodities from this type of investor.'' Increased investment into the indexes tracking agricultural commodity futures may extend beyond Feb. 5, UBS said. It didn't give comparative fig-ures for weeks prior to Feb. 5. The UBS Bloomberg Constant Maturity Commodity Index of 26 contracts has risen 8.6 percent this year after adding 3.4 percent last week.

Group of Seven officials, warning of further financial-market turmoil, indicated they will be forced into more interest-rate cuts and tax reductions to shore up the global economy. Finance ministers and central bankers ended a weekend meeting in Tokyo with a statement that ``downside risks persist,'' including the U.S. housing slump and tighter credit conditions. Without proposing specific remedies, the G-7 pledged ``appropriate actions, individually and collec-tively.'' The speed at which the American credit-market collapse spread to other parts of the world demonstrates the need for greater communication and coordination, U.S. Treasury Secretary Henry Paulson said. More than $6.7 trillion has been wiped off the value of global stocks since the beginning of the year.

Senate Agriculture Committee Chairman Tom Harkin and Ranking Member Saxby Chambliss have announced the Senate members of the Farm Bill conference committee. The Democrats on the list include North Dakota Senator Kent Conrad, Montana Senator Max Baucus, Vermont Senator Patrick Leahy, Arkansas Senator Blanche Lincoln and Michigan Senator Debbie Stabenow. The Republican lawmakers are Indiana Senator Richard Lugar, Iowa Senator

Chuck Grassley, Mississippi Senator Thad Cochran and Kansas Senator Pat Roberts.

General Motors Corporation plans for half its cars in the US to be running on ethanol by 2012. GM North America President Troy Clarke says GM will have 11 ethanol-capable vehicles on the market this year and 15 in 2009. GM re-

cently invested in Coskata, to build a cellulosic ethanol plant.

Fourth quarter profits nearly doubled for the CME Group Inc. Revenue increased 88 percent to $530 million.

Bunge reports 4th quarter net income of $245 million, seven percent less than the same period the previous year. This despite an 82 percent jump in 4th quarter sales. For the full year, Bunge's $778 million net income was up 49 percent

from 2006. The agribusiness division had a 447 percent jump in profit; fertilizer profit went up 156 percent last year.

AGCO Corporation posted an $81 million profit in the 4th quarter. This is down 37 percent from the same period the

previous year. Sales rose 33 percent to $2.2 billion.

FMC had 2007 net income of $132.4 million; which is more than $1 million better than the previous year. This is the fourth consecutive record year for FMC. Sales gains were seen, particularly in Asia and Latin America, for the agri-

cultural products division.

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Syngenta had 2007 net income of $1.1 billion. That compares to $634 million one year ago. Crop protection sales were

up 11 percent, reaching $7.3 billion. Seed sales went up 12 percent and totaled $2 billion.

NEWS

Thanks to Bloomberg News

Soybean output in Brazil, the world's second-biggest grower, will rise more than previously forecast, the govern-ment's statistics agency said. Brazilian soybean growers will harvest 58.3 million metric tons of the oilseed this year, compared with a previous estimate of 58.2 million tons, the Brazilian Institute for Geography and Statistics said today on its Web site. Corn farmers in Brazil, the world's third-biggest grower, will harvest 53.8 million tons, up from a pre-vious estimate of 53.4 million tons, said the agency, known as IBGE.

Plantings of genetically modified seeds produced by companies including Monsanto Co. and DuPont Co. jumped 12 percent last year, led by farmers in India, Brazil and the U.S., a study showed. The area sown with engineered crops increased by 30.3 million acres to 283.3 million acres (114.3 million hectares), Clive James, chairman of the Interna-tional Service for the Acquisition of Agri-biotech Applications, said today on a conference call from the Philippines. Monsanto, the world's biggest seed maker, said on Oct. 10 that 246.5 million acres containing its engineered traits were grown in 2007, up 13 percent from a year earlier. That indicated Monsanto's technology, including licenses to rivals such as DuPont, was used on 87 percent of the global biotech area, based on the international group's report.

Deere & Co., the world's largest maker of farm tractors and combines, said first-quarter earnings rose 55 percent as international demand boosted sales of agricultural equipment. The company raised its annual forecast. Net income rose to $369.1 million, or 83 cents a share, from $238.7 million, or 52 cents, a year earlier, on a split-adjusted basis. Profit beat analysts' estimates. Revenue in the quarter ended Jan. 31 rose 18 percent to $5.2 billion, Moline, Illinois-based Deere said today in a statement sent by PR Newswire. Higher commodity prices and U.S. farm income have buoyed revenue from agricultural equipment as demand for ethanol and global food crops rises. Orders from Brazil and Eastern Europe have led overseas sales. The deepest housing recession in 27 years has curbed demand for back-hoes and forestry equipment, and Chief Executive Officer Robert Lane has slowed production because sales are expected to be unchanged from last year.

Monsanto Co., the world's biggest seed producer, raised its 2008 profit forecast because of climbing demand for weed killer and genetically modified corn and soybeans. Profit in the year ending Aug. 31 will increase to $2.70 to $2.80 a share, above the Jan. 3 estimate of $2.50 to $2.60, St. Louis-based Monsanto said today in a statement. The company was projected to earn $2.79, the average estimate of 13 analysts surveyed by Bloomberg. A year earlier, profit exclud-ing some items was $2. Gross profit from Roundup and other herbicides will jump as much as 64 percent to $1.4 bil-lion in the fiscal year, Monsanto said. The January forecast was $1 billion. Higher grain prices are giving farmers more incentive to protect valuable crops, said Kevin McCarthy, an analyst at Banc of America Securities.

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NEWS

Thanks to Bloomberg News

Union Pacific Corp., the largest U.S. railroad, expects to boost rates 5 percent to 6 percent this year as freight volume remains steady. Chief Financial Officer Robert Knight gave the outlook today at a BB&T Capital Markets conference in Coral Gables, Florida. The Omaha, Nebraska-based railroad will increase prices about 3 percent in 2009 and 2010, Knight said. ``We're going to continue to move that as aggressively as we can,'' Knight said. ``It continues to be a posi-tive pricing environment for us.'' Union Pacific's pricing plans beyond 2008 are similar to those announced by Burling-ton Northern Santa Fe Corp., the second-largest U.S. railroad, last month. Both railroads serve the western U.S. Shipping volume at Union Pacific has risen less than 1 percent so far this year, according to the Association of American Railroads. That doesn't include a 3 percent decline in intermodal volume, involving a combination of train, truck and ship.

Banks and brokers will be forced to take another round of write-downs this quarter to mark-to-market their outstanding loan commitments, according to Oppenheimer and Co. analysts. ``We are slashing our first-quarter 2008 estimates on the brokers to reflect a sudden and material decline in levered loan valuation,'' write Meredith Whitney and Kaimon Chung, analysts at Oppenheimer based in New York. Whitney is the wife of professional wrestler, Justin Bradshaw Layfield.

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WEATHER

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CALENDER OF EVENTS

02/18/08 President's Day Holiday 02/19/08 LT: Mar miNY Crude Oil(NYM) LT: Feb US T-Bill(CME) 02/20/08 7:30 AM CST - Housing Starts & Building Permits(Jan) 7:30 AM CST - CPI & Core CPI(Jan) 1:00 PM CST - FOMC Minutes(Jan 30) Full Moon LT: Mar Crude Oil(NYM) Feb VIX Options(CBOE) Mar Platinum Options(NYM) 02/21/08 7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Initial Claims-Weekly 9:00 AM CST - Leading Indicators(Jan) 9:00 AM CST - Philadelphia Fed(Feb 9:30 AM CST - API & DOE Energy Stats 3:30 PM CST - Money Supply FN: Mar Coffee(ICE) 02/22/08 7:30 AM CST - Dairy Products Prices 9:30 AM CST - EIA Gas Storage 2:00 PM CST - Cattle On Feed 2:00 PM CST - Livestock Slaughter 2:00 PM CST - Cold Storage 2:00 PM CST - Cold Storage-Annual FN: Mar Crude Oil(NYM) LT: Mar Wheat Options(KCBT) Mar Corn Options(CME) Mar Oat Options(CME) Mar Rice Options(CME) Mar Soybean Opotions(CME) Mar Soybean Meal Options(CME) Mar Soybean Oil Options(CME) Mar Wheat Options(CME) Mar US T-Bonds Options(CME) Mar US T-Notes-10 Yr Options(CME) Mar US T-Notes-2 Yr Options(CME) Mar US T-Notes-5 Yr Options(CME) Mar Wheat Options(MGE) 02/25/08 9:00 AM CST - Existing Home Sales(Jan) FN: Mar Cotton(ICE)

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CALENDER OF EVENTS

02/26/08 7:30 AM CST - PPI & Core PPI(Jan) 9:00 AM CST - Consumer Confidence(Feb) LT: Feb Frozen Pork Bellies(CME) Mar Heating Oil Options(NYM) Mar Unleaded Gas Options(NYM) Mar Natural Gas Options(NYM) Mar Gold Options(CMX) Mar Silver Options(CMX) Mar Copper Options(CMX) 02/27/08 7:30 AM CST - Durable Orders(Jan) 9:00 AM CST - New Home Sales(Jan) 9:30 AM CST - API & DOE Energy Stats LT: Feb Copper(CMX) Feb Platinum(CMX) Feb Palladium(CMX) Feb Silver(CMX) Feb Gold(CMX) Mar Natural Gas(NYM) 02/28/08 7:30 AM CST - GDP-Prelim(Q4) 7:30 AM CST - Chain Deflator-Prelim(Q4) 7:30 AM CST - USDA Weekly Export Sales 7:30 AM CST - Initial Claims-Weekly 9:30 AM CST - EIA Gas Storage 3:30 PM CST - Money Supply FN: Mar Natural Gas(NYM) 02/29/08 7:30 AM CST - Personal Income & Spending(Jan) 7:30 AM CST - Dairy Products Prices 8:45 AM CST - Chicago PMI(Feb) 9:00 AM CST - Michigan Sentiment(Feb) 2:00 PM CST - Agricultural Prices FN: Mar Corn(CBT) Mar Wheat(CBT) Mar Oats(CBT) Mar Rough Rice(CBT) Mar Soybeans(CBT) Mar Soybean Meal(CBT) Mar Soybean Oil(CBT) Mar 10,5,2 YR T-Notes(CBT) Mar US Bonds(CBT)

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MARGIN REQUIREMENTS

Hedge Rates Speculative Rates

Corn $1,000 $1,350

Oats $450 $608

Rough Rice $500 $675

Soybeans $2,200 $2,970

Soybean Meal $1,350 $1,823

Soybean Oil $1,200 $1,620

Wheat $3,000 $4,050

KC Wheat $3,000 $3,750

Minneapolis Wheat $5,500 $7,150

Treasury Bonds $1,500 $2,025

Live Cattle $800 $1,080

Feeder Cattle $1,150 $1,553

Lean Hogs $700 $945

Make plans to attend the Midwest Market Solutions

2008 AG OUTLOOK MEETING Wednesday, February 20, 2008

Minerva’s Restaurant Yankton, South Dakota

9:30 am to 1:00 pm

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Midwest Market Solutions is the leading edge in commodity marketing and trading. Midwest Market Solutions was estab-lished in March of 2002 and is a full-service commodity brokerage and marketing advisory service, clearing through R.J. O’Brien. The firm specializes in individual trading strategies for the investor, personalized marketing programs for indi-vidual farm operations as well as full-service and discount broker services. The firm is located in Yankton, South Dakota and is committed to providing clients with the best information and service as possible. Midwest Market Solutions pro-vides clients with written newsletters, trade research and hedging as well as trading advice. Brian Hoops is President and Senior Market Analyst of Midwest Market Solutions, Inc. Brian can frequently be heard on radio stations across the country including: WNAX, WHO, and the Red River Farm Network.. Brian can also be heard daily on the DTN doing his own grain market commentary program as well as the Minneapolis Grain Exchange marketing hotline and the University of Illinois commodity wrap up program. Brian also writes several newsletters that are published throughout the Plains and the Midwest, covering the states of Iowa, Minnesota, North and South Dakota, Nebraska, Kan-sas, Montana, Wyoming and Idaho. Brian has been quoted in the Wall Street Journal, Dow Jones newswires and U.S. Farm Report.

Services available at Midwest Market Solutions:

• Full Service Brokerage

• Daily market commentary

• Daily trade recommendations

• Market Insider Newsletter

• Market Solutions Hedge Program

• Managed Trading Account

• Professional Trading Systems

COMPANY INFORMATION

The Market Insider Newsletter is an opinion only; expressed with the best intentions, but not guaranteed. The thoughts expressed and the data from which they are drawn are believed to be reliable but cannot be guaranteed because of their complexities and their refer-ence to the future. Neither the information presented nor any of the opinions expressed constitute a solicitation by Midwest Market Solutions, Inc. for the purchase or sale of any commodities. Any opinions expressed herein are subject to change without notice. Any republication or use of this information without the express written permission of Midwest Market Solutions, Inc. is strictly prohibited. The risk of loss in trading commodity futures may be substantial and therefore may not be suitable for the recipients of this informa-tion. Those acting on this information are responsible for their own actions. Midwest Market Solutions reserves the right to change orders, stops or take profits as market conditions warrant during the trading session. Midwest Market Solutions does not necessarily take every trade recommendation listed herein. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown in fact there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or adhere to a particular trading program in spite of trading losses is material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trad-ing program, which cannot be fully accounted for in the preparation of hypothetical performance, results and all of which can adversely affect actual trading results.

Copyright 2008 Midwest Market Solutions, Inc.