July - September 2013
Missouri Timber News Area
3Q13 Market Conditions
By Jason Jensen
Prices remain strong for nearly every species of wood across the state. This is good news for landowners thinking of selling timber. One of the problems that I’m seeing and hearing from mills throughout the state is that they have never rebuilt log inventories dating back to late winter and early spring. In the southern portion of the state we also saw record rainfall and flooding in August. That was definitely not typical August weather in Missouri. As a result log inventories are very low at many mills. The economic downturn, along with the demographics of our logging industry has also created a shortage of loggers in some parts of the state. This is resulting in mills having a very hard time rebuilding log inventories. Fall is not a good time of the year to be low on logs. Mills trying to rebuild inventory have 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. Prices for this quarter have been stable or slightly increasing for most species and product classes compared to 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 due to low log inventories. The stave industry has expanded their buying further from their mills to compensate for low inventories and high demands for barrels. I’ve also heard that good ash is bringing good money as well. 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 in this portion of the state for the last several years. White oak and walnut markets remain strong as well.