Investing in Timber

[fawtsc]

This month Costa Rica Teak market report:

Click here for ITTO Report

Costa Rica teak logs $375 to $400 per cubic meter as per report.

For the last 5 years since Indian buyers started to buy large amounts of teak in Costa Rica the prices reported by ITTO have averaged from $275 to $475.

The information provided by TATF in its web-projection page still is out of range with market prices by a sigma of 3 for the last 10 years.

For the new readers, what we are dealing here is with the big lie of wood harvesting projections for the last 10 years by TATF.

TATF has continued to project each Teak log to be worth 300% to 800% more than actually is.

Today one 20-25 year log in the market FOB will bring $250 to $300.
TATF still asserts in its web page marketing material, over time one log is worth from $900 up to $2400.m See Projections at TATF web site.

Well that is a big misrepresentation and the market does not support such falsehood.
Be careful is a Costa Rica out there.

Also remember TATF also sells other kind of trees, but nowhere in the marketing pitch you will find-out a single statement about possible returns for those purchases.

Be aware that Ipe supply is so large that prices are running at the equivalent of pine pulp that is $70-$100 per ton.