Following is the latest update from F&W reporting on markets, news and other
developments that impact forest landowners in their operating regions. This
information is based on a July 24 survey of managers.
U.S. Southeast
Managers report mostly average timber activity and markets for this time of
year, with a few outliers. Timber prices are a bit more varied, with one report
that prices are increasing, another that they are declining, and the rest
reporting average prices for the season. Regional managers report no new mill
shutdowns. A manager in Southwest Georgia reports that market interest has
increased for timber sales along with some upward movement in pricing. The
Virginia manager reports that demand for sawtimber is improving but prices
remain flat and will stay so due to the oversupply of stumpage and the low mill
capacity. In Alabama, the manager reports that pine pulpwood markets are highly
variable across his region’s operating footprint: "Southwest Alabama is
typically one of our better markets for pulpwood, however quotas are
exceptionally tight—we have had multiple buyers request extensions on first
thins because they are only able to haul 10 to 15 loads per week." But, he
reports there is a flipside: “Sawmills have actually been calling and asking us
to put out a sale or are asking for an opportunity to negotiate. Finished lumber
prices are strong — this is reflected by the flow of timber — and we hope it
will translate into improved stumpage prices as well.”
U.S. West Gulf
Most managers report markets and activity are slow, with most mills on quotas,
contributing to a decline in prices. Drax’s Morehouse BioEnergy facility at
Beekman, La., is on a scheduled shutdown, and Weyerhaeuser in Emerson, Ark., has
been shut down as well. The manager based in Arkansas reports: "With COVID-19
cases on the rise in the area where we operate, some states have changed
regulations, so even routine mill shutdowns are taking a lot longer than
anticipated. Every timber buyer I have talked to is on some form of quota with
their receiving mills."
U.S. Northeast
Northeastern markets and timber prices are average to declining, with most
managers reporting timber sales activity normal to slowing down for this time a
year, although one manager in New York reports sales activity is picking up. The
manager overseeing the upper most region of the Northeast reports that markets
are average for many species but that there are strict quotas on hardwood
pulpwood. He also reports that the mill at Jay, Maine, is not buying roundwood
for the foreseeable future. The manager in Pennsylvania reports that mills are
worried about moving pulpwood, blocking, and tie/pallet material, and that there
are very few consultant timber sales on the market. In the Central Hardwood
region, a manager in Tennessee reports tough prices on all wood products but
he’s hopeful for a late fall turn around. In New York, managers report
encouraging news: one says he’s been able to market client’s timber with
reasonable pricing and that there are a few signs of things picking up in some
solid wood sectors. The other manager reports that hardwood log markets are
"nothing fantastic" but logs are in demand and moving, pulpwood is moving but
contractors are under quotas, and pine log markets are expected to improve in
the fall.
F&W Forestry Services
P. O. Box 3610, Albany, Georgia 31706
email: fw_newsletter@bellsouth.net
Visit us at:
www.FWForestry.net