Mississippi Timber Price Report

November/December 1998
Timber Market Comments

Sawtimber

The timber market was generally slow during November/December. A mediocre pine lumber market, the coming holiday slowdown and lower standing prices for pine sawtimber since the spring combined to make the market sluggish. Many landowners were holding their timber off the market hoping for prices to turn upward. The sale activity was lower in November /December but average prices for pine sawtimber moved a bit higher. This is a common event in the Mississippi winter market.

Several reporters commented that their activities had slowed since early fall. The weather during November/December was a contributor. Harvest operations continued into December without significant problems. Mill log inventories were reported as good, but standing inventories in central and north Mississippi were less than desirable at several mills. Lower standing inventories caused consultants to report that they were wanting to test the market with a sale or two. By late December demand was increasing for winter logging tracts. Activity in south Mississippi was reported better than elsewhere in the state. One reporter commented that south central Mississippi had not received as much rain as areas further north and that made the market a bit better. On the pine side most reporters were looking forward to a better market after the New Year.

One the hardwood side, mill contacts reported good log inventories and steady lumber markets. Oak lumber markets were good for this time of year, but prices have been moving lower. Other species have been "hard to move" one reporter commented. Standing timber prices for mixed hardwood and oak timber held steady in November/December.

 

Pulpwood

Reporters commented that the pulpwood market is "terrible." Mills faced with lower pulp demand and prices were full of inventory and many dealers were on quota well into December. This is unusual. Normally, quotas are removed and pulp mills want all the wood they can get during winter months. This year economic slow downs in Asian countries, especially Japan, meant an oversupply on the world market. This situation has effected Mississippi's markets this year.

Most dealers contacted were pessimistic about the pulpwood markets improving soon. One reporter contacted mentioned that "getting a long rainy spell would help, but that's not all the market needs." In spite of the problems in the pulpwood market average pulpwood prices held steady.

 

Other Comments

No southern pine beetle activity was reported but several contacts said they were hoping for colder weather to keep populations down. They commented that mild winters can mean a beetle population increase.

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 November/December 1998.

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

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