January - March, 2009
News From Missouri
I made some sawmill visits this month and was sadden to hear the economic state of the forest products industry. I heard that #3a lumber was just bringing 10-15 cents per board feet and #2a is only bringing about 24 cents per board feet. Most mill owners said they were trying to avoid the production of grade lumber since they were losing money on every board they produced. Mill owners told me that the only products that they were producing which were making them some money were railroad ties and the selling of stave logs to the stave mills.
When will the market start to turn around? My answer to this question is that I do not know. I did hear USDA Chief Economist Joseph Glauber predict that in the last quarter of 2009, the US should start to see improvements in the economy. I hope he is right, and I hope the mill owners can survive financially until the turn around starts. If you have any questions regarding the forest products industry you can give me a call. John Tuttle (573)522-4115 ext 3304