Mon, Oct 20, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Now is a good time to invest in timber as long term outlook is strong

Thursday, March 28, 2013

Benedicte Gravrand, Opalesque Geneva:

Dr. Jacek Siry recently spoke to Sona Blessing on Opalesque Radio about how to optimise returns on timber investment given the imminent supply side shock posed by Canadian timberland. He serves as Associate Professor of Forest Economics at the University of Georgia’s Warnell School of Forestry and Natural Resources.

"Canada has had for many years a very prominent role in wood supply in the global market," Dr. Siry told Opalesque Radio. The country currently harvests around 100,000 million cubic meters a year, and the prices are not always cheap due to deliveries being done from far-away regions. Conifer fibre prices in the U.S are the cheapest at below $75 per dry metric tonne, whereas in Canada, it is around $100, he added. However, Canadian prices are still competitive compared to other regions.

But Canada is struggling with the mountain pine beetle. "They’re trying to salvage as much wood as possible," he said. He thinks the situation will resolve itself in the next few years but that output from Canada will decline, and "this will exert output pressure on timberland prices."

As the WSJ reported last October, the tiny mountain pine beetle, a tree-killing insect, has been the cause of huge problems for lumber producers in the U.S. and C......................

To view our full article Click here

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Roundtable: Where are all the good ESG hedge funds?[more]

    Benedicte Gravrand, Opalesque Geneva: What are the benefits of sustainable investing? Many pension funds look to focus on that angle to reflect their company’s good governance, but face many challenges while doing that. A portfolio manager at Univest, a large Dutch pension fund, discusses this is

  2. Bill Gross gives his first investment outlook for Janus fund[more]

    Bill Gross strikes a gloomy tone in his first note to investors at his new gig at Janus Capital. Bill Gross, the renowned bond fund manger, struck a pessimistic chord in his first note to investors at his new gig at Janus Capital. His notes, usually full of silly commentary and upbeat advice, took a

  3. Investing - Big investors move to shore up Fannie, Freddie trade, Two hedge funds eye $1bn support to Sahara to secure Subrata Roy's release[more]

    Big investors move to shore up Fannie, Freddie trade From Forbes.com: Two of the nation’s most prominent investors who have been leading the charge to make a big score out of the shares of Fannie Mae and Freddie Mac moved on Friday to shore up shares of the mortgage giants that plunged r

  4. Opalesque Exclusive: What's next for trend followers?[more]

    Bailey McCann, Opalesque New York: New research out from Ibbotson touches on a key debate happening among investors and fund managers, specifically whether long term trend followers can survive in the new

  5. Hedge funds post negative returns in the third quarter[more]

    Bailey McCann, Opalesque New York: Q3 hedge fund returns were negative, marking the industry's first quarterly decline since Q2 2013 according to the latest hedge fund data from eVestment. Emerging markets saw losses more than twice that of developed markets. Declines from funds investing in