October - December 2012
4Q12 Market Conditions
By Jason Jensen
As 2012 came to a close, the industry is looking forward to improvements in 2013. I've heard many comments from mills that are looking for timber. There appears to be lots of competition for standing timber in the southeast Missouri Ozarks and many mills have a low inventory for this time of year.
In the southern part of the state, tie markets continue to prop up the industry. However the last quarter has seen improvements in most lumber markets. From comments I've heard from many mills they are selling everything they are producing. Prices however still aren't where they need to be for the mills to make a profit. In the northern part of the state red oak markets remain soft. White oak and walnut provide the bright spot in the timber economy especially in the northern portion of the state. Good walnut prices can be a double edged sword. I've heard from foresters, loggers, and sawmills that they have seen an increasing trend towards harvesting small diameter walnut. A market for a certain product doesn't necessarily mean it is the best time to harvest the product from an economic perspective. Walnut can increase in value expotentially as it continues to increase in diameter growth. Consult a forester for local market conditions and for reliable information on when to harvest your trees.
For landowners in the River Hills portion of Missouri, markets for "light wood" species such as sugar maple are probably better than they've ever been. Good quality hickory is also in demand at this time. I've seen many foresters that have discriminated exclusively against these species in the past. My personal thoughts are let's grow the highest quality tree regardless of species. If you have high quality maple, then grow the best maple you can. Don't discriminate against hickory just because it's hickory. You never know where the next market opportunity may come from.