Mississippi Timber Price Report

January/February 2000
Timber Market Comments

 

Sawtimber

The unusually dry winter continues to hamper the timber market in January/February. Most of the state is 6 to 8 inches behind in rainfall and the Mississippi Forestry Commission has had a statewide ban on burning several times since the year began. Dry weather has meant logging conditions more like July than January and February. Dry conditions have made logging easy in most areas of the state and log markets are generally oversupplied.

Several reporters commented that logging conditions were so dry that harvesting was still possible in the swamps of central and south Mississippi. That is very unusual for winter months. Once reporter commented that "what wood markets need more than anything is a week or two of rain".

Many loggers are on quota at a time when mills normally want all the wood they can get. Most reporters commented that log yards are full or nearly so. However, in north Mississippi one reporter commented that (log) inventory was "turning over" and timber was more in demand than further south.

One reporter commented that a "wave of timber sales" came on the market after the first of the year, but since then many consultants have held their clients' timber off the market.

The pine lumber market has held steady through January/February with prices about where they were a year ago. Overall, the pine lumber market was marking time anticipating buying by treaters and the end of the "quota year". The Canadian lumber import agreement sets a quota level for imports of Canadian softwood lumber to the U.S. each year. The "quota year" begins in April, so many mills are being cautious with their production anticipating a rush of Canadian lumber to the U.S. market as the new "quota year" begins in April.

Standing pine saw timber prices moved lower in January/February because of all the wood available currently. Average prices ranged from $442 to 470/MBF, Doyle. While these prices are a bit lower than what we've seen recently, they remain good.

On the hardwood side, many mills had full log supplies and had loggers on quota. Average standing oak saw timber prices moved lower as did mixed hardwood saw timber, but hardwood lumber markets have been reported "strong". The hardwood lumber market has reportedly improved on the strength of sales for furniture, flooring and more exports. Demand for industrial lumber and timbers is also good.

Average standing oak saw timber prices during January/February ranged from $268 to 354/MBF, Doyle, statewide. Reporters in north Mississippi reported red oak saw timber markets improving.

 

Pulpwood

Markets for pulpwood were reported improving by contacts statewide buy prices remained weak. Both pine and hardwood pulpwood average prices moved lower in January/February. Several reporters commented however that pulpwood was beginning to move better and that pulp mill demand was improving.

Pulp and Paper magazine featured and "outlook" report in the January issue. The headline says, "North American (Pulp and Paper) Industry Outlook Bright Over Next Two Years". It is optimistic that the market for fiber will improve this year and beyond. It reports that the shutdowns and slowing of production in the last two years are having positive effects on the market and that supply and demand are coming more into balance. This should improve Mississippi's pulpwood markets later this year.

 

Other Comments

No significant Southern Pine Beetle activity was reported in January/February. An Alabama Forestry Commission report, however, notes that the AFC SPB flights noted 5,276 spots at the end of 1999. The AFC states in their report, "Based on the start of 2000 if control measures are not intensified the state will have major SPB populations and problems this year." See web page at Alabama Forestry Commission.

Would you like to receive Mississippi Timber Price Report (MTPR) information by E-mail? If you would like to receive a short version of the MTPR to your E-mail box send a message requesting this to the following address: Bob Daniels. We'll use your requests to create a distribution list to send this information to you.

View the Standing and Delivered prices for Jan/February 2000.

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

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