1. A Breakthrough in Trading Technology Blue Apple Trends Your Future in Control

2. Develop a Reliable Hedging Strategy For NH3, Potash, and UAN Develop a Reliable Hedging Strategy For NH3, Potash, and UAN Partnership Initiative Objective:

3. Our Hedging Strategy is made up of Three components Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology 1.Timing Model for each market 2.Bollinger Bands for each market 3.Spread Ratio for each market Following is a presentation of a hedging strategy that incorporates each of these components for the markets of NH3, Potash, and UAN

4. NH3 Hedging Strategy (NH3HS) Is Comprised of: NH3 Forecasting Model (NH3FM) and NH3 Hedging Indicators (NH3HI) NH3 Hedging Strategy (NH3HS) Is Comprised of: NH3 Forecasting Model (NH3FM) and NH3 Hedging Indicators (NH3HI) Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology NH3 Hedging Strategy

5. NH3 Hedging Indicators Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Bollinger Bands and NH3/Crude Oil Spread Ratio

6. NH3 Correlation with Crude Oil 1995-2009 Blue Apple Trends

7. Building the Hedging Model: Stage 1 Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Create the Forecasting Model for NH3

8. NH3 Forecasting Model (NH3FM) Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology The Forecasting model combines Four intermediate-term cycle lengths to Determine Buy and Sell dates

9. NH3 Forecasting Model Blue Apple Trends

10. Create the Hedging Strategy: Stage 2 Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Combine the NH3 Forecasting Model (NH3FM) with Bollinger Bands

11. NH3 Forecasting Model with Bollinger Bands Blue Apple Trends

12. What do we use to Hedge NH3? Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology The NH3 Hedging Strategy tells us WHEN to hedge. But WHICH markets do we use? A market or some combination of markets that are MOST correlated to NH3: At this time, the market that works the best is Crude Oil

13. Create the Hedging Strategy: Stage 3 Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Combine the NH3 Forecasting Model (NH3FM) with Bollinger Bands and NH3/Crude Oil Spread Ratio

14. Blue Apple Trends NH3 Hedging Model Graph 2002-2009

15. Best Correlation of NH3 to Other Markets Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Crude Oil 86% Diesel 82%

16. Correlation of NH3, UAN, Urea and Potash with Crude Oil Blue Apple Trends

17. Correlation of Nitrates and Gold Blue Apple Trends

18. Correlation between Phosphates and US Treasury Bonds Blue Apple Trends

19. Potash Hedging Strategy (PHS) Combines Potash Forecasting Model (PFM) and Potash Hedging Indicators (PHI) Potash Hedging Strategy (PHS) Combines Potash Forecasting Model (PFM) and Potash Hedging Indicators (PHI) Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Potash Hedging Strategy

20. Potash Weekly Prices Blue Apple Trends

21. Potash Hedging Indicators Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Bollinger Bands Potash/Treasury Bonds Spread Ratio Potash Futures

22. Create the Hedging Strategy for Potash Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Combine the Potash Forecasting Model (PFM) with Bollinger Bands and Potash/Treasury Bonds Spread Ratio

23. Blue Apple Trends Potash Forecasting Model

24. What do we use to Hedge Potash? Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology The Potash Hedging Strategy tells us WHEN to hedge. But WHICH markets do we use? A market or some combination of markets that are MOST correlated to Potash: At this time, the market that works the best is 30-Year Treasury Bonds

25. Best Correlation of Potash to Other Markets Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Crude Oil 65% 30-Year Treasury Bonds 70%

26. Correlations between Potash and 30-Year US Treasury Bonds Blue Apple Trends

27. Potash Hedging Strategy

28. UAN Hedging Strategy (UANHS) Combines UAN Forecasting Model (UANFM) and UAN Hedging Indicators (UANHI) UAN Hedging Strategy (UANHS) Combines UAN Forecasting Model (UANFM) and UAN Hedging Indicators (UANHI) Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology UAN Hedging Strategy

29. UAN Hedging Indicators Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Bollinger Bands UAN/Crude Oil Spread Ratio

30. Create the Hedging Strategy for UAN Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Combine the UAN Forecasting Model (UANFM) with Bollinger Bands and UAN/Crude Oil Spread Ratio

31. UAN Forecasting Model Blue Apple Trends

32. What do we use to Hedge UAN? Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology The UAN Hedging Strategy tells us WHEN to hedge. But WHICH markets do we use? A market or some combination of markets that are MOST correlated to UAN: At this time, the market that works the best is Crude Oil

33. Best Correlation of UAN to Other Markets Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Crude Oil 88% Diesel 85%

34. UAN Forecasting Plus Bollinger Bands Blue Apple Trends

35. UAN Hedging Strategy Complete Blue Apple Trends

36. Urea Hedging Strategy (UHS) Combines Urea Forecasting Model (UFM) and Urea Hedging Indicators (UHI) Urea Hedging Strategy (UHS) Combines Urea Forecasting Model (UFM) and Urea Hedging Indicators (UHI) Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Urea Hedging Strategy

37. Urea Hedging Indicators Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Bollinger Bands Urea/Crude Oil Spread Ratio

38. Create the Hedging Strategy for Urea Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Combine the Urea Forecasting Model (UFM) with Bollinger Bands and Urea/Crude Oil Spread Ratio

39. What do we use to Hedge Urea? Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology The Urea Hedging Strategy tells us WHEN to hedge. But WHICH markets do we use? A market or some combination of markets that are MOST correlated to Urea: At this time, the market that works the best is Crude Oil

40. Best Correlation of Urea to Other Markets Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Crude Oil 91% Diesel 89%

41. Urea Forecasting Model Blue Apple Trends

42. Urea Hedging Strategy Complete Blue Apple Trends

43. Nitrates Hedging Strategy (NHS) Combines Nitrates Forecasting Model (NFM) and Nitrates Hedging Indicators (NHI) Nitrates Hedging Strategy (NHS) Combines Nitrates Forecasting Model (NFM) and Nitrates Hedging Indicators (NHI) Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Nitrates Hedging Strategy

44. Nitrates Hedging Indicators Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Bollinger Bands Nitrates/Crude Oil Spread Ratio

45. Create the Hedging Strategy for Nitrates Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Combine the Nitrates Forecasting Model (NFM) with Bollinger Bands and Nitrates/Crude Oil Spread Ratio

46. Nitrates 3 Forecasting Model Blue Apple Trends

47. Nitrates Forecasting Model Blue Apple Trends

48. Nitrates Forecasting Model with Bollinger Bands Blue Apple Trends Ryco

49. What do we use to Hedge Nitrates? Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology The Nitrates Hedging Strategy tells us WHEN to hedge. But WHICH markets do we use? A market or some combination of markets that are MOST correlated to Nitrates: At this time, the market that works the best is Crude Oil

50. Best Correlation of Nitrates to Other Markets Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Crude Oil 94% Diesel 89%

51. Nitrates Hedging Strategy Blue Apple Trends

52. Phosphates Forecasting Model Blue Apple Trends

53. Hedge when the market in question is in a sell zone and also near or above the upper Bollinger Band. Hedge when the market in question is in a sell zone and under the middle Bollinger Band. Sell when the market in question is in a Buy Zone, and below the middle Bollinger Band, and under the initial Buy price for two or three weeks. Confirm that the Hedge Ratio Criteria agrees with the above rules. The Hedge Ratio tells us when the market in question is Rising Faster or Falling Slower than the market being used to hedge. Hedge when the market in question is in a sell zone and also near or above the upper Bollinger Band. Hedge when the market in question is in a sell zone and under the middle Bollinger Band. Sell when the market in question is in a Buy Zone, and below the middle Bollinger Band, and under the initial Buy price for two or three weeks. Confirm that the Hedge Ratio Criteria agrees with the above rules. The Hedge Ratio tells us when the market in question is Rising Faster or Falling Slower than the market being used to hedge. Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology Rules for All Timed-Hedging Strategies

54. Next Steps Blue Apple Trends A breakthrough in trading technology Blue Apple Trends A breakthrough in trading technology 1.Consult with DEBRUCE on risk tolerance issues 2.Determine whether to hedge with futures or options 3.Establish role of Blue Apple in ongoing hedging process 4.Analyze next markets for hedging strategy 5.Create a partnership between Ryco and Blue Apple to increase profitability of Ryco trading operations 1.Consult with DEBRUCE on risk tolerance issues 2.Determine whether to hedge with futures or options 3.Establish role of Blue Apple in ongoing hedging process 4.Analyze next markets for hedging strategy 5.Create a partnership between Ryco and Blue Apple to increase profitability of Ryco trading operations