Mississippi Timber Price Report

March/April 1998
Timber Market Comments

 

Sawtimber

The most significant development in the timber market in March/April was the weather just as it had been in January/February. Seemingly just as the weather had turned wet during the winter, by early part of March the rains ended. March and April were dry month and this change in the weather gave loggers the chance to increase harvesting activities. Mills concentrated on building log inventories and as one reporter commented, "loggers have gotten so efficient now, they can really restock mills quickly." That is exactly what happened. As mills became restocked, standing pine timber prices began to soften and by the end of April some mills had put loggers on quota. "The urgency of winter has definitely come off the market" another reporter commented.

The sawtimber market has settled to a more normal pace. Pine sawtimber prices fell $20 to $60 per thousand depending on the area and buyers were expecting prices to go lower.

One consultant commented that he was beginning to get his summer logging and more complicated logging jobs ready to sell now that the winter logging rush is ended.

A somewhat sluggish pine lumber market through April kept timber buyers cautions. Though housing starts in early 1998 are up there is strong competition in the lumber market from western softwood lumber, in part due to the Japanese economic recession.

On the hardwood side, log demand was good during the period. Oak sawtimber prices dropped a bit but mixed hardwood sawtimber prices moved higher. Hardwood lumber demand was reported good but prices were described as "steady". One mill reporter commented that "the Japanese and Asian markets were off and that loss of export sales was taking some strength out of the hardwood market. With housing starts up, demand from cabinet markets and furniture is good. Most mills contacted were cautiously optimistic about the first half of 1998 in the hardwood lumber industry.

 

Pulpwood

Pulpwood prices eased during March/April especially hardwood pulpwood. Average standing pulpwood prices dropped $2 to $7 per cord statewide except for hardwood pulpwood in north Mississippi. Buyers are looking toward summer when pulpwood becomes plentiful.

 

Other Comments

No report of Southern Pine Beetle activity was reported.

From south Mississippi reports the pole industry appears active with high prices reported for pole-quality pine timber.

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 March/April 1998.

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

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