Foods Market Outlook June 18 2011: coffee prices

Foods Market Outlook June 18 2011: coffee prices - Coffee prices are trading moderately below last month's 14-yr high. Below are bullish factors and Bearish factors of coffee prices.

Bullish factors include (1) the prediction from Brazil's Ag ministry for Brazil's coffee output to fall 9.5% this year to 43.5 mln bags as trees enter the lower-yielding half of their 2-yr cycle, and (2) ICO's cut in its 2010/11 global coffee output estimate to 133 mln bags from a Mar estimate of 133.7 mln bags and its statement that coffee supplies will be "tight" the rest of the year as stockpiles in producing nations stay near a 40-yr low of 13 mln bags.

Bearish factors include (1) May Brazil coffee exports up +3.7% y/y to 2.62 mln bags, (2) Columbia's prediction for a 2011 coffee harvest of 9.5 mln bags, up +6.7% from last year, and (3) ICO data that shows Mar global coffee exports rose +19.6% y/y to 10.45 mln bags.

Fundamental Outlook-Bull market correction-Coffee prices are correcting lower from their 14-yr high on favorable weather for Brazil's ongoing harvest. Coffee production in 2009/10 fell -4.5% y/y to 122.9 mln bags (ICO), but production should rebound to +8.2% y/y 133 mln bags in 2010/11 Brazil's 2010/11 (Jul-Jun) production will rise 23% y/y to 55.3 mln bags on a favorable 2-yr cycle (USDA).

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The Definition of Food Pyramid

For those of you who do not know, the food pyramid is a carefully planned exactly what the human body needs nutritionally. That is, the food pyramid is a guide to help determine what you should eat each day. Do not have a menu of food that needs to eat per day. All you have is a guide that can help you plan your meals so you get the right amount of nutrients in the system every day.

The food pyramid shows you the way to keep fit and healthy by eating a healthy and stable. Until recently, that's all the food pyramid did. In 2005, however, the food pyramid as we know it was changed forever, and a more up to date on the food pyramid took its place. Now you will see that instead of two-dimensional food pyramid we're so accustomed to, has become more than three dimensions. To show the additional benefits that regular exercise will have on you, a man climbing a ladder on the side of the food pyramid has been added.

Previously, if you look at the food pyramid that would see the horizontal line that extends from the food pyramid, with most of the food we eat from the bottom. Food you should eat at least this amount can be found at the top. This is a food pyramid that we all know and who had shown us, when we were in school.

The new food pyramid is very different. Despite the fact that it has become three dimensional and have to get on the side of the figure, this new food guide has also eliminated the horizontal bar. Instead, we can now see lines starting from the tip of the pyramid and radiating downward.

Each section is so large or small, that the earlier food pyramid sections were. Only with this new food pyramid, you now know that if you eat food types more than others, even within those food groups, certain foods you should eat in moderation.

In addition, you will also find that the new food pyramid is color coded. This gives an orange stripe represents grains, green stripe for vegetables and a red for fruits, yellow stripe that indicates the amount of fats and oils, you must have: a blue strip of milk and milk products are allowed and a purple band shows that the amount of meat, fish, beans and the like that is consumed in a day.

With six color bands indicating the amount of food you should take, and a figure of a healthy person running the stairs at the side of it, this new food pyramid is definitely better than the old, and can help you learn more about the best eating habits and a healthy lifestyle.

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