July - September, 2010
News from Our Neighbors
Bloomberg reports that lumber prices plunged to an eight-month low after a report showed that new-home sales in the U.S. fell at a record pace in May, dimming prospects for building materials.
"Home sales are down 33 percent, so you have an overall economy issue," said Dewey Strickler, the president of Ag Watch Market Advisors in Nashville, Tennessee. "For grains or any other commodities to rise, you have to have strong consumer demand, and we don't really have that." Lumber has declined 21 percent this year, partly on sluggish demand for building materials.
TimberMart South, however, reported south-wide average stumpage prices for the five major timber products all continued to increase, three of them for the fourth straight quarter, and all five were above prices one year ago. Pine and hardwood pulpwood stumpage prices showed strongest gains, up 24 and 42 percent respectively for the quarter, and up even more from one year ago. Sawtimber stumpage prices increased this quarter but markets still remained weak. Meanwhile, Mixed Hardwood stumpage prices increased, generally following the pine sawtimber trend for the past few quarters.
Source: Bloomberg, TimberMart South