Mississippi Timber Price Report

January/February 1999
Timber Market Comments

 

Sawtimber

Standing timber markets were just fair in January/February, but were improving toward the latter part of February.

Winter logging tracts were in greatest demand as is normal for this time of year. Several reporters commented that mills in their areas had delayed buying standing timber for a few months this fall and now were getting interested again. The pine lumber market had trended up during the early part of the year giving some optimism to lumber producers. Though the number of sales this period were lower, most sales reported throughout the state were attracting from 4-8 bids, some as high as 13.

North Mississippi's market seemed to be the slowest. One consultant in north Mississippi reported that he was only offering winter logging tracts in the current market.

Many mills contacted throughout the state reported having satisfactory to good log inventories but were being cautiously optimistic about 1999's lumber market. A few consultants commented that the number of bids they were getting on some "dry weather logging" sales indicated that industry expects an improved market for 1999.

Standing pine sawtimber prices held steady to a bit lower in January/February.

On the hardwood side, the lumber market started the year fair and that market has improved a bit in February. Hardwood lumber demand has been good but prices have been soft. The U.S. hardwood market is still being affected by poor export markets due to the Japanese recession. Accordingly, lumber supplies are reported good. Standing, mixed hardwood sawtimber prices showed some increases and decreases. Oak stumpage was similar with more increases than decreases.

Most hardwood mill reporters commented that their log inventories were good but a few were looking for more logs to carry through until spring. Traditionally, April and May can be the time when hardwood logs get scarce.

 

Pulpwood

The pulpwood market was described as "dead" by many reporters. The widely-publicized slump in the pulp and paper industry is being felt in Mississippi's pulpwood markets. A few Mississippi pulp mills have taken down time to use the market slump to do mill maintenance in early winter.

Mississippi pulpwood standing prices stayed steady in January/February but demand has clearly been down. Consultants and timber buyers alike report that pulpwood is the hardest product to move and hardwood is more difficult than pine.

Pulp and paper industry publications are reporting that there is too much pulping capacity worldwide and that company consolidations and mergers are likely. While this trend is apparently underway other industry analysts see a brighter side. One projection sees short term demand for Southern fiber markets improving due to factors like "robust consumer spending, the indefinite withdrawal of significant container capacity and a weakening U.S. dollar." As one reporter put it "there's no where to go but up when you're at the bottom."

 

Other Comments

A few reporters mentioned seeing more southern pine beetle damage in north Mississippi than previously. They speculated that some ice storm damage would attract beetle problems. One hoped southern pine beetle would not become a problem since the pulpwood market is so slow right now. Landowners are advised to check your timber periodically for the southern pine beetle.

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 January/February 1999

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

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