Mississippi Timber Price Report

 

September/October 1997
Timber Market Comments

 

Sawtimber

The timber market was very active during the September/October period. Timber buyers worked hard to bolster log inventories and prepare for the winter, wet season. Standing prices for pine sawtimber moved higher in every region as competition for good tracts intensified. Several reporters commented that "(pine sawtimber) prices are too high, but demand is good." Many consultants contacted reported being busy with bid openings and timber buyers were kept busy looking at tracts to buy. Many buyers and sellers were concentrating on "winter logging" tracts -- those sites with good timber that can be logged during wet weather -- and these sales helped push prices higher. There were several sales reported with very high prices reported for pine sawtimber in most regions. These were kept out of the reported averages, but are reported here to illustrate the nature of the competition in the market (all prices $/MBF,Doyle):

North Mississippi -- $593;$614
Central Mississippi -- $593;$625;$630

Record-pace production of Southern pine lumber is providing good demand for pine sawtimber stumpage. Southern pine lumber production has been exceeding last year's 15.2 billion board feet production pace for most of 1997.

On the hardwood side, mill buyers were also working to improve log inventories, so mills would have adequate winter supplies. Loggers continued to work in the bottomlands to harvest tracts already purchased through October. Mixed hardwood sawtimber prices increased in north Mississippi but fell or held steady elsewhere. Oak sawtimber was in good demand and prices rose in north and central Mississippi. One reporter in north Mississippi, noted hat "quality oak brings a premium" on one sale and that "most anything will sell and buyers seem to be desperate." Reporters commented that the oak lumber and flooring markets were good, but prices and demand for other species were soft.

One reported standing price in the Delta for ash sawtimber was $285/MBF,D.

 

Pulpwood

1997 has been a much better year in the pulp and paper industry than 1996. Demand for pulpwood has reflected that situation in Mississippi. Reporters commented that mills have been increasing their use of pine pulpwood this year. In September/October pine and hardwood standing pulpwood prices moved higher. Chip mills and pulpwood yards were buying to improve inventories for the winter and the market price followed the demand upward.

Nationwide statistics were showing paper and paperboard production about 5% higher than 1996.

 

Other Comments

Southern Pine Beetle (SPB) was not expected to be a problem this year in Mississippi, but SPB have been found on National Forest lands and on some private lands in Mississippi during the second half of the year. During September/October the U.S.F.S. reported 82 small (2-13 acre) salvage sales to clean up SPB. A few reporters noted some small "patches" that needed cutting due to SPB. Kemper County was reported to have had SPB problems also. Landowners are advised o monitor their forest land for signs of SPB.

Anyone can get copies of the Mississippi Timber Price Report from the local Extension office. The reports 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 September/October.

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