Lumber Prices: Imbalance means profit opportunity

Posted May 28, 2008

“As you might expect, the U.S housing slump is reducing demand for finished lumber. Meanwhile, timber, pulpwood, and paper prices are rising worldwide - but curiously, profit margins are eroding. What’s up with that?” — Don Miller

by Don Miller

Baltimore – (TFN): There’s a classic squeeze going on in the lumber markets right now.

As you might expect, the U.S housing slump is reducing demand for finished lumber. Meanwhile, timber, pulpwood, and paper prices are rising worldwide - but curiously, profit margins are eroding.

What’s up with that?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

THE INVESTMENT CLUB YOU CAN’T GET INTO

The Wall Street Journal recently reported that “there are now more than 430,000 households in the U.S. with a net worth of $10 million or more.”

You’re about to have the opportunity to join them.

Investment intelligence powerful enough to put $500,000 in your pocket over the next 12 months. Learn more.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The global commodity boom has created a supply/demand price imbalance between the four distinct industry sectors that rely on timber as a raw material. In fact, that imbalance is a huge mismatch. And savvy investors may be able to wring substantial returns from the winner. Read on to learn how.

****Make sure you sign up for our free TFN News Feed for breaking news, special reports and new financial videos. You can pick your favorite reader . Or if you prefer, you can have or free daily email delivered to your inbox .