Mississippi Timber Price Report

 

September/October 1999
Timber Market Comments

 

Sawtimber

September/October started slowly with good harvesting conditions keeping plenty of pine and hardwood logs at most mills. But by the end of the period the pending winter months had the pace of timber trading on the increase in Mississippi.

The pine lumber market firmed up during September and began to improve from its July low. The hardwood lumber market also improved with red oak sales "strong" according to several mill contacts. These improvements were welcomed from the summer slowdowns seen in July.

Lumber market improvements were the stimulus needed to get timber buyers looking for stumpage. Several foresters reported that good tracts of timber were in demand in October, especially "winter logging" tracts. Some consultants that had been holding their client's timber off the market all year put tracts "on the block" as planned. Several reported good interest in their sales and 6 to 12 bidders on each sale offered.

One buyer commented that there was not much timber on the market in North Mississippi though compared with Central Mississippi. "There are very few timber prospectuses in North Mississippi at this time", he said. "We've got buyers checking folks to see if they'd like to sell".

While buying interest was rising, logging conditions remained excellent. One reporter commented that "logging conditions are great. Sloughs in the Noxubee River are dry that haven't been dry in 40 years". These conditions allowed loggers to go to most places they needed to and mill log yards filled quickly. But interest for hardwood stumpage apparently remained firm with lumber markets steady and reports of lumber purchases overseas (Europe and Asia) picking up. One mill reporter remarked, "even white oak lumber is moving".

As a result of lumber market improvement, pine sawtimber prices moved higher statewide, except in the Delta and River region. Hardwood sawtimber prices also moved higher.

 

Pulpwood

The pulpwood market was reported as "improved" by many reporters in September/October especially on the pine side. Both the paperboard and market pulp segments of the pulp and paper industry (these form the bulk of Mississippi's P&P industry) saw slight improvements in September/October.

Pine pulpwood prices increased a bit statewide while hardwood pulpwood prices varied.

 

Other Comments

Very little Southern pine beetle activity was reported.

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View the Standing and Delivered prices for Sept/October 1999

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

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