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Market Wrap-Up by Chris L. Haverkamp Date: 05/21/13 Estimated Update: 05/22/13 Company: Paragon Investments, Inc. Phone: 888-452-8751 eMail: info@pitrader.com Website: www.ParagonInvestments.com

Fundamental: July Wheat finished up 2 at 685 1/4, 4 3/4 off the high and 10 3/4 up from the low. December Wheat closed up 1 at 708 1/2. This was 10 3/4 up from the low and 3 off the high. July Chicago wheat saw choppy and two-sided trade early today but found sell pressure late in the session and posted a new low for the move. This pushed the market down to the lowest level since April 2nd. Paris milling wheat futures hit a fresh 11 month low on favorable weather for Russia and ideas that the US price may need to be lower to attract new export business. Traders noted that advancement in the French soft wheat crop has been seen over the last week as temperatures warmed up. A private analyst in Russia raised their 2013/14 Russian production forecast to 53.8 million tonnes, up from 52.5 previously but down from the USDA estimate of 56 million. In addition, weekend rains for the central and eastern plains added to the negative tone. Weekly export inspections came in at 21.149 million bushels as compared with 25.75 million necessary each week to reach the USDA projection for the year. Cumulative exports have reached 94.3% of the USDA projection for the season as compared with 92.9% as normal for this time of the year. The market found some early support from ideas that spring wheat plantings are still well behind normal but the Canadian wheat production forecast of 29 million tonnes, the highest since 1996, helped to keep the upside advance limited. Technical: JULY WHEAT scored a new low for the move, reversed to close higher on the day with small gains, but remains under the pivotal price area (now 699 to 705, which is in a negative mode) keeping the market trend negative. Chart action is seen sideways. Open interest was near unch on Friday in low volume suggesting little fresh interest by longs or shorts; today's volume was seen even lighter. Stochastics are in a negative mode working towards oversold levels; the RSI is between midrange and oversold levels. Market set-up has rally attempts limited to the pivotal price area. Support seen at 679 then, 674.

Corn Futures

Fundamental: July Corn finished down 3 1/4 at 649 1/2, 11 1/4 off the high and 6 3/4 up from the low. December Corn closed up 3/4 at 520 1/4. This was 6 1/4 up from the low and 2 3/4 off the high. December corn traded moderately lower for most of the session and down to the lowest level since June 15th (511 was June 15th low before the market took off with drought issues last year) as traders see active plantings this past week and great weather for emergence and early growth. Traders see this afternoon's weekly crop update showing that the crop is 63% planted from 28% last week and 84% as the 10-year average. Some traders looking for record week of progress and 70% complete. The July and September contracts led the market to the downside today as traders took profits in July/December and September/December bull spreads from last week. Weekly export inspections came in at 14.55 million bushels as compared with 15.15 million necessary each week to reach the USDA projection for the year. Cumulative exports have reached 68.8% of the USDA projection for the season as compared with 68.4% as normal for this time of the year. The USDA reported this morning that US private exporters sold 120,000 tonnes of US corn to an unknown destination for the 13/14 marketing year. Many in the trade suspect the buyer to be China as they continue to dip their toe in the market as prices move lower in an attempt to rebuild domestic reserves. Technicals: JULY CORN saw two-sided trade and closed with small losses while remaining above the pivotal price area (now 647 to 646, which is trying to roll into a positive mode) putting the market trend positive. Chart pattern is in the middle half of a long term down trending channel. Open interest was up on Friday in moderate volume suggesting new longs and shorts entering the market; today's volume backed off a bit. Stochastics are in a positive mode just above the midrange levels; the RSI is hovering around midrange levels. Market set-up has trade working both sides of the pivotal price area over the near term. Resistance seen at 661 then, 666. Support seen at 643 then, 638.

Fundamental: July Soybeans finished up 16 at 1464 1/2, 1 1/2 off the high and 21 1/4 up from the low. November Soybeans closed down 3 1/4 at 1225. This was 14 1/4 up from the low and 4 off the high. July Soymeal closed up 10.2 at 435.3. This was 10.6 up from the low and 0.5 off the high. July Soybean Oil finished down 0.32 at 49.2, 0.56 off the high and 0.34 up from the low. July soybeans traded higher on the day and pushed up to the highest level since March 8th as strength in the cash market and ideas that producers will continue to be tight holders of old crop helped to support. November soybeans traded down double digits as traders see little impact on the crop "if" soybeans are planted a little late. In addition, traders see the potential for corn delays in Minnesota to result in higher soybean plantings as further delays with heavy rains early this week might spark some switching soon. The July/November spread made a new contract high this morning as the market attempts to shut down crush demand in the face of tight supplies. Weekly export inspections came in at just 3.328 million bushels as compared with 5.88 million necessary each week to reach the USDA projection for the year. Cumulative exports have reached 93.3% of the USDA projection for the season as compared with 86.2% as normal for this time of the year. July meal was up sharply this morning as traders see short-term tightness but plentiful global supply by the fall. July and December oil traded down moderately on the day. Analysts see US soybean planting at 24% complete in this afternoon's planting progress report. This would be the slowest pace for this time since 1996. Plantings were estimated at 6% complete last Monday. Technical: JULY SOYBEANS posted another new high for the move and closed with good gains while remaining above the pivotal price area (now 1418 to 1403, which is in a positive mode) keeping the market trend positive. Chart pattern has the market reaching for the top end of long term sideways trading range. Open interest was up on Friday in moderately active volume suggesting new longs entering the market; today's volume backed off a bit. Stochastics are in a positive mode working towards overbought levels; the RSI is at overbought levels with today's gains. Market set-up is for set- backs to be limited to the pivotal price area. Resistance seen at 1466 then, 1480. Support seen at 1454 then, 1447.

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Live cattle futures finished higher on the day following profit taking after a negative reaction to the cattle on feed report early in the day. The cattle market showed some sign of recovery today bouncing off of contract lows from last week as the market appeared to be over sold coming into today. Midday wholesale beef prices were mixed with choice making new contract highs at 209.96 +0.45 and select at 193.76 +1.45 with 102 loads trading. Estimated daily slaughter was 125,000 head to start the week compared to 123,000 head last week and 125,000 head a year ago. Technical aspects are showing near term strength with both June and August closing over the pivot with first areas of support around 11910 with 11805 behind in June with resistance at 12090 on the upside. The long term trend remains negative at this point with traders looking to sell rallies. Feeder cattle closed mixed with May remaining under pressure posting triple digit losses while August and September posted triple digit gains on profit taking. Technically futures are showing signs of near term strength closing over the pivot in August with first areas of support around 14285 and 12125 behind with resistance at 14550 on the upside. The CME feeder index closed at 131.98 -3.42 on 5/17. Feeders appear show near term strength yet the fundamental weakness is likely to limit upside in the interim thus bears will look to sell rallies. Lean hog futures closed higher on the day staging a slight recovery from losses last week on profit taking and new longs after the dust settled from the PEDV scare on Friday. Expectations for higher pork prices are likely to continue to support hog futures this week as long as holiday demand continues to be active. Midday mandatory FOB plant prices were higher with carcass at 92.80 +0.19 holding premium to futures with strength in bellies holding the average up. Estimated daily slaughter was 410,000 head to start the week compared to 400,000 head last week and 415,000 head a year ago. Technically futures are showing a slight sideways pattern in June and July closing right at the pivot with June support around 9150 and resistance at 9260 on the upside. The market looks to hold firm as long as cash and product prices remain supportive seasonally. The CME index closed at 93.18 +0.25 on 5/17.