July - September, 2012
Current Market Conditions
By Jason Jensen
Markets have improved over the previous quarter. Mills were previously having a hard time moving grade lumber. Many mills had been placed on a quota for the amount of grade lumber they could sell and were sitting on significant inventories of lumber. Demand for grade lumber appears to be up although prices haven't had the same corresponding increase. Flooring grades seem to be in demand as well as most other grades. There is even a little movement in the pine market although I don't anticipate that will last. One concern in the Ozarks is that some mills have been placed on a quota for the amount of railroad ties they can produce. This is a significant concern since the tie market has really kept Missouri's timber industry ?propped up? during these tough economic times. The white oak market continues to be strong especially with stave quality timber. The ?white wood? species continue to be popular among consumers and demand is good especially in the River Hills. Log inventories on average tend to be low at most mills. This is a concern especially going into fall/ winter.