Missouri Timber Price Trends
January - March, 2007
News from Missouri's Neighbors
Nebraska reports that there are competitive market conditions for
species and grades of lumber. Demand for items such as hard maple and
red oak is limited, backing up inventory through the supply chain to
the sawmill. The buildup is pressuring prices. The demand for soft
maple remains solid, particularly for Sel and Btr grades. The strong
demand from domestic and off-shore markets is driving a brisk business
for white oak. Log decks are low across much of the territory. Even
though weather conditions have been more conducive to logging in
recent weeks, poor pulpwood markets could constrict future logging
Tennessee reports that the market has been mixed, some species are hot
and others are nearly dead. Red oak upper grades are very difficult
to sell at almost any price and hard maple is very slow. White oak and
walnut are very much in demand, just cannot get enough of either to
meet possible orders. The lower grade markets are not as good as they
were, but steady. The tie market continues to be very strong.
The slumping housing market is the primary reason for the slowing of
lumber demand. Housing starts were at a high of 2.265 million units in
January 2006 and have dropped to 1.408 million units a year later, a
drop of 38 percent. Diesel is about the same as it was a year ago and
has only recently begun to creep upward !!
The winter has not been a difficult one from a weather standpoint, not
much cold weather, warm in fact a few times during the last few weeks.
The mills in the eastern part of the state seem to have plenty of logs
and as you go further west, they have fewer. Wet weather has hurt some
mills, but doesn't seem to have caused any unwanted shutdowns.
Timber Mart South's latest reports states that south-wide average
stumpage prices dipped further for both pine sawtimber and chip-n-saw
in the 4th quarter of 2006. Pulpwood prices increased slightly. Prices
for all five major products were below the averages of one year ago.
Stumpage prices for both mixed hardwood sawtimber and hardwood
pulpwood recovered slightly this quarter from declines earlier in the
year. Both averages were about $0.50 per ton above prices last
quarter, while still below prices of one year ago.
Sources: Nebraska Timber Talk, Tennessee Forest Products Bulletin, Timber Mart South.
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