Mississippi Timber Price Report

July/August 1998
Timber Market Comments

 

Sawtimber

The situation in July/August was a continuation of a trend that began in March. Dry conditions statewide have generally favored timber harvesting. Especially this summer, logs have been plentiful and loggers could operate almost anywhere necessary. This has been good for hardwood mills and not so good for pine producers.

While housing starts have been good this summer, an Asian economic recession has kept lumber, normally sent to Asian export at home, creating an overproduction situation. Hence, pine lumber prices have trended down since last winter and stumpage prices have followed. Standing pine timber prices moved lower in July/August statewide and many reporters commented that landowners had been holding timber off the market. Many foresters mentioned they are keeping busy dealing with storm-damaged tracts or thinning plantations but not putting major timber sales up for sale because the market is too low. In comparison to last summer, average standing prices are $20/MBF higher for pine but they are well below this past winter.

Many pine mills have good log inventories and have limited log deliveries because logs are so plentiful. A few mill reporters commented that they were looking for winter logging tracts to improve their standing inventory for this winter but they are cautious of paying too much with a "soft pine lumber market."

On the hardwood side lumber markets are better. Strong housing starts and good consumer confidence have benefited hardwood markets. Red oak lumber is in good demand and prices are stable. Reporters commented that some of the other species, however, were a bit slow such as ash. Mills report logs plentiful an a few reported being a head of schedule for winter storage. Some individual species prices reported for Delta and River regions were:

Ash: 330/MBF
Red Oak: 350/MBF
Overcup Oak: $150MBF
Sweetgum: $110/MBF

Average standing hardwood sawtimber prices moved up in Central and South Mississippi while oak prices moved higher statewide in July/August.

 

Pulpwood

Pulpwood demand has been lower this summer and prices have been dropping. The conditions seen during May/June continued through July/August and many reporters are not optimistic of better pulpwood markets soon. They mention the Asian recession and a worldwide surplus of pulp and paper production capacity as a problem. One reporter said "the long-term situations is good, we just need to get through this short-term mess." Statewide pulpwood prices moved lower in July/August. Quotas were common.

 

Other Comments

Several reporters mentioned increased Southern Pine beetle activity in Central and South Mississippi during July/August. No large spots were reported but foresters contacted seemed aware of a greater incidence of beetle-killed trees during their travels. Landowners are advised to monitor their timber for signs of Southern Pine beetles. One reporter commented that "it would be a bad time to have a beetle outbreak with the pine market as sluggish as it is."

Pine plantation survival continued to be a concern of foresters contacted due to the dry weather continuing. Several also speculated that drought losses of plantations from last year would increase seedling demand for this coming planting season.

Anyone can get copies of the Mississippi Timber Price Report from the local Extension office. 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 July/August 1998.

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

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