Mississippi Timber Price Report

 

September/October 1998
Timber Market Comments

 

Sawtimber

The timber market in Mississippi remained sluggish in September/October. While timber sales continue to be made, the general level of activity is noticeable less. Log yards are full of inventory in most areas of the state. Many mills are limiting log deliveries and many landowners and consultants are keeping their timber for better markets.

The "market's just slow" one reporter commented. "There is plenty of wood available and uncertainties in the lumber market have made buyers cautious," another reported. They are right. Dry weather into the fall made logging easier and log inventories have improved, causing some pine mills to close their gates a day or two a week. With less timber on the market companies have been concentrating on tracts already purchased but not yet cut. The emphasis on using "standing inventory" has created the situation where many ills have plenty of logs on the yard but standing inventories are not where procurement managers would like them to be.

This may be the brightest spot in the pine sawtimber market. As winter rains begin mills will likely be looking for "winter logging" tracts and competition for these tracts could get fierce this winter. For now, a steady pine lumber market with lots of lumber available means buyers are looking for timber at their price. Basically, for pine it's a "buyer's market" in September/October.

Even though construction spending and housing starts have been the best in a decade, there is plenty of softwood lumber from many sources to fill demand and keep prices competitive.

Pine stumpage prices dropped a bit state wide to the range of $400 to $425/MBF, Doyle on average. This may be the lowest we'll see with winter approaching. Most year's prices move higher in the winter.

On the hardwood side, the oak sawtimber market is another bright spot. While mixed hardwood timber prices slipped a bit, oak sawtimber prices generally moved higher. Many foresters reported that the hardwood market was better than the pine market in September/October. The hardwood timber market however, was also affected by an excess log supply. Hardwood mills were busy stocking logs for the winter but that activity will likely slow as Christmas approaches.

Both the pine and hardwood sawtimber markets have been affected by the oversupply of pulpwood, too. As it becomes more difficult to sell pulpwood, the prices buyers can pay for tracts moves lower.

To sum it all up, the timber market is a "buyers market" right now, but some landowners are making good sales on quality timber on tracts with good access. A few sales of $500/MBF, Doyle for pine sawtimber were reported in North, Central and South Mississippi but these were exceptions kept out of the regional averages.

 

Pulpwood

Virtually all reporters noted that the pulpwood market is still poor, especially for hardwood. Hardwood pulpwood is plentiful and many foresters report trouble moving it all, currently. Standing prices for both pine and hardwood pulpwood moved lower in September/October. One pulpwood dealer commented that "rain will be welcome in the pulpwood market".

In part however, the pulp market is being affected by the world economic situation particularly the Asian countries experiencing recession now. "This may not turn around quickly", commented one reporter.

 

Other Comments

Many reporters continue to comment about dead trees they see during their travels. Most comment that the dead trees seem to be isolated and some of the damage appears due to Ips beetles but "red topped pines" put foresters on alert. It's likely that beetle activity will wane with winter coming but landowners are advised to monitor their timber. Very little Southern Pine beetle activity was reported.

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 September/October 1998.

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

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