; Hurricane Sandy boosts Timber prices, claims FRA
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Hurricane Sandy boosts Timber prices, claims FRA

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Timber prices are rising as a result of the devastation caused by Hurricane Sandy, which could mean growing returns for those with investments in timberland, according to reports by FRA.

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									             Hurricane Sandy boosts Timber prices, claims FRA
Timber prices are rising as a result of the devastation caused by Hurricane Sandy, which could
mean growing returns for those with investments in timberland, according to reports by FRA.

Bainbridge Island, WA, November 01, 2012 - Timber prices are rising as a result of the
devastation caused by Hurricane Sandy, which could mean growing returns for those with
investments in timberland, according to reports by Forestry Research Associates (FRA).

The Chicago Mercantile Exchange was up yesterday by the maximum daily rate of $10 for 1,000
board feet. The rise is the result of the demand for timber for use in the rebuilding of thousands of
homes, which were damaged by the hurricane throughout the Eastern US. Daryl Swetlishoff, form
Raymond James Ltd, told Canada’s Globe and Mail Newspaper, “Lumber prices are atypically high
for this point in the year, and bucking a seasonal trend already.

“For the near term, even if the hurricane is partially a psychological impact on lumber, prices are
going to be buoyant, he added.

Several large forestry firms in Canada are now preparing to up their production in order to meet
the new demand for lumber. The US might also import timber from elsewhere, such as Latin
America, according to FRA’s analysis partner Peter Collins. Mr Collins explained: “The impact of
Sandy was obviously devastating for many people living on the East Coast and the demand for
timber to quickly rebuild their homes will be huge.”

Investing in sustainable timber, through plantation projects like those run by Greenwood
Management and other similar firms in Brazil, can be a lucrative option at the moment. “Several
analysts are predicting a boom in timber prices as demand continues to creep up,” added Mr
Collins.

Mr Swetlishoff added, “A shock like this could keep prices higher and for longer in a season when
it is typically weak. We’re tempering our view by saying that prices were already a bit elevated.”

Prices are high due to strong demand from emerging economies like China and India, which are
importing huge amounts of timber for house building and infrastructure development.

Contact:
Peter Collins
Forestry Research Associates
620 Vineyard Lane
Bainbridge Island, WA 98110
(206) 316 8394
info@forestry-research.com
http://www.forestry-research.com

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