April - June 2013
2Q13 Market Conditions
By Jason Jensen
Separately, the Mark Twain National Forest (USFS) reported the following prices for sales in the past two quarters:
Late winter extended into spring throughout much of the state. The cool wet spring created poor logging conditions that extended through May and the first part of June. As a result log inventories were very low at many mills. Mills trying to rebuild inventory has created intense competition for standing timber especially in the southern portion of the state. Competition combined with improving markets, makes it a good time for landowners to consider selling timber. Nearly all species and product classes showed price increases over the last quarter. Foresters are reporting higher than expected prices on nearly all sales. Foresters have also reported prices at or above levels before the economic downturn in 2009 as the result of demand and competition. In the southern part of the state tie markets remain strong. Flooring markets are good as well which has resulted in higher demand for pallet grade lumber. Prices for pallet lumber haven't necessarily increased along with the higher demand however. As a result pallet grade logs and lumber still remain lower than they need to be for anyone from the landowner to the logger to the mill to make much profit.
Stave quality white oak prices remain good especially with the poor logging conditions resulting in low log inventories. The stave industry has expanded their buying further from their mills to compensate for low inventories and high demands for barrels. In northern portions of the state, demand for red oak lumber has finally picked back up again. That is good news since the red oak market has been very supressed for the last several years. Log inventories were low through the month of June resulting in demand for stumpage and logs. White oak and walnut markets remain strong as well.