July - September 2006
News from Missouri's Neighbors
Timber Mart-South reports that south-wide drought conditions led to lower average stumpage prices for all major timber products in the 2nd quarter of 2006. Prices were lower than last quarter and lower than the 2nd quarter of 2005. This seems to follow a trend of weak second quarters. For the past four years generally lower prices April through June compared to January through March.
Across the South, Timber Mart-South reports, mixed hardwood sawtimber stumpage prices fell modestly, 1.9 percent for the quarter and 1.6 percent from a year ago. A significant downward trend in red oak stumpage prices continued, according to reporters. Prices for other hardwood sawtimber species also fell. Hardwood pulpwood was the biggest loser in a down quarter, dropping 18.1 percent from last quarter and 23.2 percent from a year ago.
The Tennessee Forest Products Bulletin notes that red oak has been moving slowly but continuing to move. The lower log prices for much of Tennessee reflect the lower prices for red oak lumber. White oak continues to remain solid for both domestic and export production. Prices have moved up somewhat to reflect that in white oak lumber. Poplar has remained strong also. Some markets for maple have filled up as the supply has been up and down because mills have been cutting their logs to keep them from staining. Ash has slowed as well.
The Mississippi Timber Report states that hardwood mills had more than enough logs to meet demand during the quarter, but demand for oak logs for flooring markets kept high-grade hardwood sawtimber stumpage prices steady. Mixed hardwood sawtimber dropped 6.6% or $1.88/ton to average $26.37/ton. High-grade material held steady increasing 0.1% or $0.04/ton to average $30.86/ton while low-grade material decreased by $2.58/ton or 10.3% to average $22.47/ton. Hardwood pulpwood dropped $1.70/ton or 23.2% to average $5.64/ton. Flooring oak continues to be in demand and needs remain steady. Ties and pallet cants are strong and look to stay that way for a while.
Sources: 1) Timber Mart South, Tennessee Forest Products Bulletin, Mississippi Timber Report