1. Global Market Dynamics February 7, 2013

2. Commodity

3. Global Grain Prices Volatile & High 3 Grains

4. Live Hog Prices 4

5. World Corn Prices 5

6. World Soybean Meal Prices 6

7. US Corn Price ($/bu) – Structural Shift 7 All Time High

8. What are the Factors Causing This? Low Grain Stocks Weather Problems in US & South America China Impact Government Bio-Fuel Policy Plateauing Yields 8 Grains

9. Global Grain Stocks are Still Tight: Commodities to Remain High * 2012 Source: USDA 9 Ending Stocks Very Tight

10. Feb 5, 2013 Feb 2012Feb 2011 July 2012 Major Change in US Weather Situation 10

11. Weather Extremes -- Global Warming or Extreme Event? 11

12. China – Major Influence in Commodities 12 China

13. Source: Financial Times, Morgan Stanley 13 China

14. China Crop Dynamics 14 China

15. China/Hong Kong Pork Imports <2% Up 282% Since 2005 15 China

16. 16 China’s Influence on Soybeans China

17. Corn Usage for Ethanol – 10% Blend 17 Gov’t needs to review mandate and modify it

18. Ethanol Mandate Hitting Blend Wall 18

19. World Crude Demand While US Moves toward Energy Independence, Asian Demand May Prevent Lower Prices 19

20. Planted Corn Acres – Steady Increase 20

21. Trends in Corn Yields Since 1900 21 Down 17% from 2011

22. Corn Balance Sheet Changes 22

23. Soybean Planted Acres – Stuck In Neutral 23

24. Trends in Soybean Yields Since 1990 24 35.3 USDA Down 19% from 2011

25. US Soybean Balance Sheet --- Heading to zero 25

26. Outlook

27. SOI Values -- El Nino / La Nina Update

28. 2013/14 Corn Balance Sheet Scenarios

29. 2013/14 Soybean Balance Sheet Scenarios

30. Mexico Economy Snapshot Source: USDA, EIA 30

31. Mexico Agriculture Snapshot Source: USDA, EIA 31

32. Protein

33. Global Protein Consumption 7.9 11.6 0.7 14.8 33 Pork

34. Per Capita Pork Consumption 34 Pork

35. U.S. Pork Exports – Significant Demand Factor *China includes: China/HK and Taiwan*Includes pork and pork variety meats Estimated 24% of Production 35 2011: 4,892 Million PoundsJan-Nov 2012: 4,502 Million Pounds Jan – Nov 2012 Up 2% 2011 Up 18% 23% of Production 2012 Exports will be key in sustaining current prices 2012 USDA Forecast: 3%

36. US Pork Exports

37. US Ham Exports 37

38. US Monthly Ham Exports to Mexico 38

39. US Hog Breeding Herd – Sept Stabilized – Moderate Expansion 39

40. Lowest Cattle Inventory Since Truman 40

41. Global Protein Outlook Cutback in EU pork of 3 – 5% Stable pork production in US and Canada China +/- 0.5% ??? Global beef production down 3 – 5% Global chicken production up 1 – 2% Global pork production flat to down 0.5%

42. Social Media & Public Concerns LFTB Beef Cage Free No Antibiotics No Hormones Gestation Crate Free These changes in current production systems will add cost and reduce supply 42

43. Key Takeaways US needs good weather for ideal crop on largest acreage since 1930s. Corn could approach $4 - $5/bu South American soybean crop important to keep meal prices in check. China to be the wildcard

44. Water….The New Oil Total volume of water on Earth is 1.4 billion km3 97.5% saltwater, 2.5% freshwater 70% of freshwater in icecaps or permanent snow cover 30% of freshwater is stored underground, < 1% in rivers and lakes 70% of water used for irrigations, 22% for industry, 8% for domestic use By 2025, 1.8 bln people will be living in regions with absolute water scarcity By 2025, 66% of world population living under water stress conditions Water Resources Water Uses (m3/inhab/yr) = Cubic meters per inhabitant per year Total Actual Renewable Water = maximum yearly amount of water available for a country at a given moment % of Freshwater Resources Withdrawn = % of freshwater withdrawn from total actual renewable water resources Ag Water Withdrawal = Amount of water withdrawn by ag sector as a % of all water withdrawn Water Scarcity