Mississippi Timber Price Report

May/June 1997
Timber Market Comments

 

Sawtimber

The beginning of summer is traditionally the time of year where stumpage prices decline. Standing sawtimber prices in Mississippi trended down a bit in May/June, but not very much. A steady lumber demand and persistent rains have kept buyers looking for stumpage. Reporters comment that many mills have had lower-than-normal log inventories for this time of year. Another perceived problem has been a limited number of loggers to cut the tracts already purchased. Several buyers commented that there have been some difficulty getting logs to the mill yards due to fewer loggers today than a few years ago.

Despite problems of weather and logging capacity landowners continue to have good timber markets. Pine lumber production continued at a near record pace and lumber sales remained strong. Several reporters commented that they were "looking for more landowners to offer their timber for sale. Though some landowners may be waiting till fall to market their timber, this year summer is a good time." Many reports received had 8 to 12 bidders, especially higher quality sales in central and south Mississippi.

The hardwood lumber market has been steady as lumber supply and demand has come into better balance. Red oak has been moving consistently according to mill contacts though not always at the prices they'd like. The rains have hampered hardwood loggers with many of the bottomlands remaining too wet into late June. This slow down in log supply has been a worry to hardwood buyers, who need the summer months to build inventory for wetter, winter months.

Some oak sawtimber stumpage prices reported in the Central and the Delta and River regions were impressive. Three sales in the Delta and River region for oak in May/June were $400/MBF, $585/MBF and $600/MBF respectively. Three other oak sales in the Central region were reported over $400/MBF stumpage this period. The market for high quality oak stumpage remains excellent. Forest Service studies have projected real price increases for the next decade for high quality timber of preferred species like, red oak in Mississippi.

 

Pulpwood

Pulpwood markets have remained active with few dealers reporting quotas. This is due to good pulpwood demand and rainy conditions that have hampered supplies. One reporter commented that "supplies of wood were behind schedule enough that he doubted if quotas would be imposed." Prices remained steady to a bit lower.

 

Other Comments

A few reports of southern pine beetles were mentioned and the Forest Service has seen some increase of beetle activity on their lands throughout the state. Landowners are advised to keep an eye out for southern pine beetles on your property.

Anyone can get copies of the Mississippi Timber Price Report from the local Extension office. The report is now available through the Cooperative Extension Service, County Computer Network to all County Extension Offices. For the latest timber prices, call your County Extension Office or to get on the mailing list, contact Extension Forestry at P.O. Box 9681, Mississippi State, MS 39762.

View the Standing and Delivered prices for May/June 1997.

As always, your comments, pros and cons are welcome.

A black line that separates the body text from footer information