Incognito, Malleefarmer;
I see this on the Forestry sector:
“MONTREAL, Dec 27, 2005 (The Canadian Press via COMTEX) -- A few feeble voices in the country's forest industry believe there will be a comeback in 2006.
Realistically, if there is a revival, it will come because the industry can't get any worse. In fact, wags have said before the industry had hit rock bottom and then dropped even further.
…The same challenges are hitting companies everywhere, to varying degrees: the higher Canadian dollar, declining demand for newsprint, heavy duties on lumber exports to the United States and competition in pulp and paper from emerging producers in Asia and South America.
This points to signs the pulp and paper sector is going the way of textiles - transferring to the Southern Hemisphere where trees grow faster and wages are lower.
Economist Louis Theriault, who did a study on the industry for the Conference Board of Canada, sees a brighter picture in the long term, but for the moment "we're in a state of absolute disaster. There's overcapacity throughout North America; there's plant closures as we speak."
Theriault said the pulp and paper segment has been operating in the red for the last six to eight quarters. "Collectively in Canada, it can't get worse," Theriault said.
Based on the Conference Board's belief the dollar will stabilize at around 81 cents U.S., Theriault said recent efforts to limit overcapacity by shutting machines and entire plants will start to pay off.”
Now, where is the grain industry… vs… the forestry industry?
Where are we headed?
Is the CDN$ headed to $1 Par $1USD?
Malleefarmer:
Many are suggesting the Aussie $ is headed back down below .70, what do you think?
I see this on the Forestry sector:
“MONTREAL, Dec 27, 2005 (The Canadian Press via COMTEX) -- A few feeble voices in the country's forest industry believe there will be a comeback in 2006.
Realistically, if there is a revival, it will come because the industry can't get any worse. In fact, wags have said before the industry had hit rock bottom and then dropped even further.
…The same challenges are hitting companies everywhere, to varying degrees: the higher Canadian dollar, declining demand for newsprint, heavy duties on lumber exports to the United States and competition in pulp and paper from emerging producers in Asia and South America.
This points to signs the pulp and paper sector is going the way of textiles - transferring to the Southern Hemisphere where trees grow faster and wages are lower.
Economist Louis Theriault, who did a study on the industry for the Conference Board of Canada, sees a brighter picture in the long term, but for the moment "we're in a state of absolute disaster. There's overcapacity throughout North America; there's plant closures as we speak."
Theriault said the pulp and paper segment has been operating in the red for the last six to eight quarters. "Collectively in Canada, it can't get worse," Theriault said.
Based on the Conference Board's belief the dollar will stabilize at around 81 cents U.S., Theriault said recent efforts to limit overcapacity by shutting machines and entire plants will start to pay off.”
Now, where is the grain industry… vs… the forestry industry?
Where are we headed?
Is the CDN$ headed to $1 Par $1USD?
Malleefarmer:
Many are suggesting the Aussie $ is headed back down below .70, what do you think?
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