Lumber prices at 12 year highs
SUNARES Co-Fund Advisor Udo Sutterlüty speaks with Jochen Staiger at Ducascopy TV in Geneva
about the lumber industry, which he knows well from his youth, and they look at lumber prices, now at a 12 year high and what the future may look like. They discuss the importance of the AAC (Annual Allowance Cuts) in Canada on the supply side, which is the annual level of harvest allowed on a particular area of Crown land over a specific number of years (5–10 years in most cases) to ensure sustainability over the long term. They also cover the growing demand from Asia with the expansion of the middle class as they look to purchase more timber furniture and buildings. At the end they also talk about one of the lumber stock holdings in Canada held within the SUNARES fund.