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INDUSTRY AT A
GLANCE
From Forest2Market's Economic Outlook
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Performance was mixed in
February for wood and paper products manufacturing (Table 1). With increases in overall activity,
new and backlogged orders, and declining customer inventories, Paper Products looks to be
reasonably well positioned for the future. Wood Products, on the other hand, continues to wither;
the only ray of sunshine came from a decline in customer inventories, but that was tempered by
shrinking order books.
According to the Association of American Railroads' (AAR) Rail Time Indicators report, the
volume of U.S. rail traffic is still "off" from 2009's levels - and even more substantially
relative to 2008. However, lumber and wood products showed an increase in shipped volumes during
January 2010, relative to January 2009.
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HOUSING MARKET
UPDATE
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Sales of both existing
and new homes fell in February, with existing home sales slipping 0.6 percent to 5.02 million units
and new home sales hitting a record low, falling 2.2 percent to 308,000 units (Table 1). Pending
home sales were also down, 7.6 percent lower in January than December.
Housing starts fell as well, dropping 5.9 percent to an annual adjusted rate of 575,000.
Permits, a leading indicator of housing activity, were down 1.6 percent (Table 2). According to the
National Association of Home Builders, U.S. home-builder confidence fell from 17 to 15 in March,
the fourth drop in six months.
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LUMBER TRENDS
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The Story Is in the Numbers
Sometimes, numbers tell a
story better than words do. Take, for instance, the following chart showing combined Southern
Yellow Pine orders, shipments and prices for 2010.
Based on actual data from orders and invoices, this chart captures the story behind lumber
prices. It is a snapshot of the market through time.
Fourth quarter of 2009
Orders and shipments were fairly well balanced. Prices were stable as a
result.
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PACIFIC NORTHWEST
UPDATE
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By: Gordon Culbertson
Douglas fir log prices
remain strong throughout the Westside of Oregon and Washington. Lumber prices have been holding up,
and plywood prices rose dramatically on the heels of the Chilean earthquake.
Regional Westside prices for domestic Douglas fir 2S averaged $438 per MBF during March
2010. This is a significant turnaround from the depths of April 2009 when prices were in the $330
per MBF range. The last time prices exceeded $435 was December 2008, as they passed through on a
slide from $500+ per MBF levels.
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PETE STEWART WINS FRA
STAFF AWARD
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Forest2Market's President
and CEO,
Pete
Stewart, received the Staff Award at the
Forest
Resources Association's 2010 Annual Meeting for his support of the organization and its goals.
According to FRA President Richard Lewis, the Staff Award recognizes a member who has
stepped in beyond the call of duty to make the FRA a more effective organization, generally by
filling a need the staff is not equipped to fill. "Associations like ours have limited staffs and
resources. As a result, we rely on our members to assist us. Stewart did this over and over again
in the last year."
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ASSOCIATIONS OFFER F2M
DISCOUNTS
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Mississippi and Texas Join Program
Forest2Market would like
to welcome the
Mississippi
and
Texas
Forestry Associations as the most recent participants in our Association Discount Program. What
does this mean? When renewing or signing up for Forest2Market's
Timber
Owner Market Guide or
Online
Timber Pricing Service for Landowners, members of these organizations will receive a 15 percent
discount. That could mean as much $45 in savings.
At a time when forest owners may allow their memberships to lapse, these associations offer
money-saving discounts on data that can help members track the value of their timber and
know its true market value when it's time to harvest. Join us in supporting these
organizations.
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