Mississippi Timber Price Report

January/February 1998
Timber Market Comments

Sawtimber

Log supply continued to be the key factor in Mississippi's timber markets for January/February, as it was in November/December. Rainy weather kept logging and transportation operations difficult for much of the period especially in central and south Mississippi. Pine sawtimber stumpage prices were at record highs. Several reporters commented that there was "a good bit of timber on the market." They said apparently, landowners and consulting foresters were reacting to the high year-end prices and bringing more timber to market. The buyers noted however, that "timber prices were too high" and they were "only looking at winter logging tracts now." Many pine mills had lower-than-desired log inventories and were competing strongly for tracts of good pine timber that could be cut immediately. Average pine sawtimber stumpage prices moved higher in every price region of the state. While averages were in the mid $400 price rang there were reports of tracts bringing $5 to $600 per thousand (Doyle) in every region.

Strong demand for pine timber was pushed by a surging housing market. Housing starts were strong in January/February every area of the US, especially the Northeast and South. This fueled softwood lumber demand. A fairly mild winter in the Northeast allowed some construction to continue. Southern Pine Lumber output for 1997 was reported at 16.05 billion board feet (5.2% higher than 1996) and that pace seemed to carryover into 1998.

While prices were high for standing timber most buyers were looking forward to spring, better weather and lowers prices. Many felt that as spring progressed, log availability would improve and prices would moderate. Even if prices moderate, the market for Mississippi pine sawtimber in 1998 is the best it has ever been. A few short years ago in 1992 statewide average pine sawtimber prices were $243/MBF,D! This is a strong market signal to landowners. Keep your timberland productive by regenerating harvested lands and managing existing stands.

On the hardwood side, most mills were in satisfactory shape with log inventory, though some were needing logs. Log inventories were in better shape in north Mississippi than elsewhere. Mixed hardwood sawtimber average standing prices held steady while oak sawtimber prices moved higher. Several consultants remarked that oak prices in west central Mississippi were coming up.

Several mill contacts remarked that demand for oak lumber was good. Other species however, were soft. The ash market in particular was off late in the year.

Some individual hardwood sawtimber standing prices were:

North Mississippi

Yellow Poplar

$175/M

White Oak

$200/M

Post Oak

$100/M

Sweetgum
and Hickory

$125/M

Central Mississippi

Yellow Poplar

$150/M

White Oak

$200/M

Sweetgum

$130/M

Pine and hardwood lumber mill owners seem content with limber markets and according to "Outlook" sections of trade journals, a good first half of 1998 is expected.

 

Pulpwood

Paper and paperboard production was steady in early 1998 and pulpwood was in demand. Pulpwood yards and dealers reported that mills were in need of wood. Weather this winter has kept inventories of pulpwood thin and prices reported for pulpwood stumpage reflected the demand. Pine and hardwood pulpwood average standing prices moved higher statewide.

 

Other Comments

Some Southern Pine Beetle (SPB) activity was reported in central Mississippi this time. Kemper County in particular was mentioned by one reporter. Some standing prices for SPB killed salvage timber reported in Central Mississippi were:

Pine Sawtimber

$375/MBF

Pine Pulpwood

$25/cord

We will undertake an evaluation of the Mississippi Timber Price Report later this spring. Recipients of the report are asked to look for the survey soon and please participate with your suggestions and comments when you receive it. The survey will be sent to all who receive the MTPR.

Anyone can get copies of the Mississippi Timber Price Report from the local Extension office. The report is now available through the 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 January/February 1998.

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

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