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Blog

Timber Price Movements in the US South during March/April 2016

May 27, 2016
Author: Joe Clark

Timber price trends during the March/April 2016 period saw pulpwood prices decreasing and sawtimber prices remaining relatively flat. Pine pulpwood saw the biggest decrease (-4.69 percent) dropping to $10.03/ton. The next two largest decreases were seen in pine chip-n-saw (-3.17 percent) and hardwood pulpwood (-3.14 percent). Pine sawtimber prices (<1 percent) remained steady while hardwood sawtimber prices (+1.01 percent) saw the only increase during the time period.

Pine

Pine pulpwood prices slipped (-4.69 percent) Southwide to $10.03/ton during the March/April time period. The West-South fell (-6.38 percent) to $8.69/ton, while the East-South region dropped (-4.18 percent) to $13.28/ton and the Mid-South region fell (-3.69 percent) to $8.11/ton.

Pine chip-n-saw also saw a price drop (-3.17 percent) to $16.59/ton Southwide. The East-South dipped (-3.62 percent) to $18.55/ton while the Mid-South dropped (-2.87 percent) to $15.04/ton and the West-South dropped (-2.93 percent) to $16.17/ton.

Pine sawtimber prices remained relatively unchanged throughout the South, falling less than 1 percent. The East-South increased .02 percent, raising the price to $27.11/ton. The Mid-South saw a mild decrease (-2.38 percent) to $23.27/ton and the West-South saw a mild increase (.38 percent) to $28.43/ton.

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Hardwood

Hardwood pulpwood prices decreased 3.14 percent Southwide in March/April. The East-South and the West-South both saw a dip in prices, while the Mid-South remained relatively stable (-.24 percent) at $8.98/ton. The East-South dropped (-3.57 percent) to $7.59/ton and the West-South fell (-4.89 percent) to $12.37/ton.

Hardwood Sawtimber prices increased Southwide by 1.01 percent. The East-South and Mid-South both remained relatively stable, each decreasing by <1 percent. In the East-South, hardwood sawtimber prices are now at $24.88/ton, while prices in the Mid-South stand at $29.96/ton. Prices in the West-South region increased (+3.25 percent) to $32.88/ton.

How have prices changed since the previous 60-day prices? Read Timber Price Movements in the US South during January/February 2016.

Summer Outlook

With the advent of summer and the potential for hot, dry weather over the next several months, logging activity will increase on a Southwide basis and this will affect timber price movements. We will see an increase in sawtimber supply, as a result, which will in turn lead to lower market prices as many mills institute production quotas with already-full woodyards. At the local level, there could be moderate increases in sawtimber prices depending on weather events and logging ability. Hardwood pulpwood supply will also increase during this time period, as it is a byproduct of sawtimber clear-cuts. Look for hardwood pulpwood prices to decrease in tandem with sawtimber prices on a Southwide basis, although there may be room for some slight variation at the local level.

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