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  • Archive for March, 2012

    Demand from China results in higher timber futures


    2012 - 03.16

    Demand from China has ensured that lumber futures have reached a ten-month high in February.

    The latest Wood Resources international report shows that lumber futures have outperformed all other commodities, with prices gaining 11 per cent in February alone.

    Analysts believe that timber could reach prices of $300 per 1,000 board feet by mid-summer. At the moment, it is hovering around $275.20 on the Chicago Mercantile Exchange.

    The major strength behind timber prices seems to be the demand from China, which shows no sign of abating, and, if anything, should grow even further, claim analysts. West Fraser Timber Co, which is the largest lumber producer in the US said that the amount of timber being shipped to China “picked up substantially” between the final quarter of 2011 and the first quarter of 2011 so far.

    Meanwhile, timber investors, such as those who have invested in plantation land through Greenwood Management’s Brazilian projects, will also be happy to hear the good news straight from the horse’s mouth. Hakan Ekstrom, the President of Wood Resources International, said that the US housing market will also start to increase demand for timber. He told Bloomberg: “The general trend should be upward, with more optimism in the market that housing starts should slowly start to increase.”

    Forestry investment report makes for interesting reading


    2012 - 03.02

    A new report details the most attractive timber investment locations in the world, providing a valuable insight for anyone considering investing in timber and forestry.

    The Global Tree Farm Economic Review by RISI has just been released and it has already been welcomed by investors thanks to its positive news about timber demand in China.

    Although it’s plain to see that China’s appetite for timber seems pretty insatiable at the moment, some have claimed that it is dropping off. However, this recent report shows that 2011 demand hit record levels and that there was also a 30 per cent rise in the timber demand deficit in China, totalling per 150,000 cubic metres.

    The report looks at geographic, political and economical factors that could have an impact on the forestry industry in each country. It found that timber demand is also on the increase in several other nations, including India, which is also experiencing massive economic growth.

    The report added that tree plantation schemes, such as the one operated by Greenwood Management, for example, in Brazil, are becoming popular for the production of timber for emerging markets.