Jan. - March 2006
Regional Prices
Timber Mart South reports that, compared to the previous quarter, south-wide average prices were mixed in the 4th Quarter of 2005. Prices were affected by Katrina/Rita salvage, high fuel prices, and dramatically different levels of precipitation (drought in the western South and heavy rainfall along the southern Atlantic Coast.
Across the South, mixed hardwood sawtimber saw average prices down slightly from last quarter and down 3.5 percent from the end of 2004. Hardwood pulpwood took a downward correction in the 4th Quarter, with the south-wide average price down 13 percent from the previous quarter although remaining 7.7 percent above the same period last year. Reporter in Arkansas and mentioned that dry logging conditions that depressed hardwood stumpage markets.
The Nebraska Forest Service reports that the marketplace remains "rather competitive". Most suppliers are able to balance shipments with production, preventing wide-spread gains in inventory of a particular item. Many say poor logging conditions have resulted in reductions in total sawmill output.
The Tennessee Department of Agriculture-Division of Forestry notes that the market seems to be fairly steady. They received mixed reports of the conditions, some dry areas where log supplies are where they should be for this time of the year and a few others where wet weather has made logging difficult and consequently resulting in lower log inventories. The market for red oak is weak in the upper grades and has forced some mills to lower log prices. White oak was also very slow. Crossties were a bright spot as they continued to be in demand and that has forced a rise in price for both oak and mixed hardwood ties. (Gum makes the best tie, according to the Tennessee tie buyers.)
Source: Timber Mart South, Timber Talk (Nebraska Forest Service) , Tennessee Forest Products Bulletin