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Managing Lumber Price Risk: A Program to Maximize Margins in the Forest Industry

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Publication date
14/07/2010
Number of Pages
4
Language:
English
Type of Publication:
Other
Focus Region:
Global
Focus Topic:
Market / Trade
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk assessment
Risk reduction/mitigation
Commodity:
Forestry
Author
FCStone

Lumber prices have been extremely volatile over the last few years due to the robust housing market and supply disruptions. Profitability in the forest products industry is largely dependent on the direction of lumber prices. Trying to manage lumber price risk is an extremely complex process due to the overwhelming number of lengths, widths, grades and species of lumber. What most companies do not realize is that there are ways to manage lumber price risk and successfully manage margins.FCStone Forest Products Group offers unique market intelligence and innovative financial solutions to address commodity price volatility. Our lumber specialists have significant risk management experience and can make important contributions to your organization. Through the Integrated Risk Management Program (IRMP), FCStone Forest Products Group provides companies with the solutions, tools and platforms necessary to meet budgets, stabilize input prices and secure margins. Our extensive databases and detailed quantitative analyses on your sales and purchases allow us to provide measurable bottom-line results.