April - June 2014
The Word on the Street
By Jason E. Jensen, CF
Markets for every species and every product class are good. This is good news for landowners who may have been waiting for markets to improve. Demand for nearly all products is good. Markets are currently good for every species of wood that we grow in Missouri including hickory, maple (both hard and soft), and cottonwood. Stave quality white oak and every grade of walnut continue to be in high demand. Red oak markets in the northern part of the state are good. Pine markets have been improving as well. There is a variety of pine products being sold including posts, poles, shavings logs, cants, and even an increasing number of pallets being built from pine. This is good news for landowners with pine. Pine markets have been sporadic at best for the last 15 years or more. A sustainable pine market is critical to maintaining the health and productivity of much of our southern Missouri forests. I've also had several requests from mills looking for cedar. Although often looked at as a weed, cedar is a valuable species and actually lends itself to potentially more value added opportunities than any other species that we have in the state.
In the southern part of the state, markets for nearly all products and species are good. Every product is in high demand. Grade markets have improved to the point where there may even be a few railroad ties being sawn down into lumber. As a result, tie prices have been increasing in value as well. Flooring and pallet markets continue to be strong as well. Competition is intense for standing timber in the southern part of the state. Competition has driven stumpage prices up in many areas. It is not uncommon to have eight or more bidders for timber sales in several southern counties. This can be a double edged sword. It is good if you are a landowner selling standing timber because increased competition equals increased prices. It can also be bad since increased pressure is placed on the forest resource.