Pine Timber Prices Rise in Southeast
Oct. 20, 2005 - Prices paid Southeastern tree growers for pine pulpwood, which has been deeply depressed in recent years, showed a substantial increase in the third quarter, reports F&W Forestry Services.
Marshall Thomas, president of F&W, said prices for pine pulpwood, the primary source of fiber for pulp and paper mills, rose 16% on average during the three-month period. Prices for pine sawtimber, larger trees used for making lumber, also rose slightly, while prices for pulpwood and lumber-size hardwood trees fell.
These prices are based on sales handled by F&W for private landowners in the core Southeastern states of Alabama, Georgia, Florida, and South Carolina, the company said.
Third quarter timber prices are typically low due to usually dry late summer and early fall weather, Thomas said.
The fact that pine prices were stable to rising during the period is good news.
But the good news may be short lived. The salvaging of hurricane-damaged timber will likely have a dampening effect on timber prices in all of the Gulf states as well as Georgia and Arkansas, Thomas writes in his firm's newsletter.
Indeed, F&W's Jackson, Miss., office reported that prices paid landowners in the hurricane damaged area of Southern Mississippi plunged an average of 68 percent from pre-Katrina timber sales.
However, Thomas said once the hurricane salvage is completed, the next two to four years could be quite good for Southern timberland owners. The dollar remains weak, housing is strong by historical standards, and interest rates are relatively low, Thomas said. When you add the increased demand due to rebuilding of the Gulf, I think it is reasonable to forecast higher prices ahead for pine chip-and-saw and large saw timber.”
F&W Forestry Services, Inc., provides marketing and other forest management services to private timberland owners across the South. F&W timber prices are based on its own timber sales in behalf of landowner clients and other marketing data drawn from its 13 regional offices in eight states from Virginia to Texas, encompassing the region’s main commercial forested areas.
SOURCE: F&W Forestry Services, Inc.
Marshall Thomas, president of F&W, said prices for pine pulpwood, the primary source of fiber for pulp and paper mills, rose 16% on average during the three-month period. Prices for pine sawtimber, larger trees used for making lumber, also rose slightly, while prices for pulpwood and lumber-size hardwood trees fell.
These prices are based on sales handled by F&W for private landowners in the core Southeastern states of Alabama, Georgia, Florida, and South Carolina, the company said.
Third quarter timber prices are typically low due to usually dry late summer and early fall weather, Thomas said.
The fact that pine prices were stable to rising during the period is good news.
But the good news may be short lived. The salvaging of hurricane-damaged timber will likely have a dampening effect on timber prices in all of the Gulf states as well as Georgia and Arkansas, Thomas writes in his firm's newsletter.
Indeed, F&W's Jackson, Miss., office reported that prices paid landowners in the hurricane damaged area of Southern Mississippi plunged an average of 68 percent from pre-Katrina timber sales.
However, Thomas said once the hurricane salvage is completed, the next two to four years could be quite good for Southern timberland owners. The dollar remains weak, housing is strong by historical standards, and interest rates are relatively low, Thomas said. When you add the increased demand due to rebuilding of the Gulf, I think it is reasonable to forecast higher prices ahead for pine chip-and-saw and large saw timber.”
F&W Forestry Services, Inc., provides marketing and other forest management services to private timberland owners across the South. F&W timber prices are based on its own timber sales in behalf of landowner clients and other marketing data drawn from its 13 regional offices in eight states from Virginia to Texas, encompassing the region’s main commercial forested areas.
SOURCE: F&W Forestry Services, Inc.
posted by Jengel199 at
1:37 PM
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