Dear FMS Contact:
A lot has happened since our last timber market update. In general, the
combination of a low supply of raw materials at the mill and increased demand
for finished forest products have led to higher stumpage prices for landowners.
Mills are struggling to keep enough wood due to the recent wet weather and a
shortage of loggers. Simultaneously, the demand for pine lumber, cardboard, and
all forms of hardwood lumber have increased. Below is a general summary of
markets for standing timber in the Mid-South:
Pine chip-n-saw and sawtimber. While pine lumber prices have already
retreated from their all-time high, mill expansions and new mill announcements
should keep stumpage prices from falling back to pre-covid levels for a while.
The stumpage prices for middle size and large pine products are good throughout
our operational area. However, the market is especially good in the following
counties:
Alabama: Lamar, Fayette, Marion, Walker, and Winston
Mississippi: Monroe, Lowndes, and Clay (We also had a really
good sale in Lauderdale County, MS)
White oak staves. Excellent! The Tennessee Valley has the best markets
for this product at this time.
Grade hardwood sawtimber. Prices for most all hardwood sawtimber remain
strong. Markets are great throughout the Mid-South but are particularly strong
north of the Tennessee River.
Hardwood pulpwood. These markets have improved dramatically since last
summer’s lockdown. Mills are running at capacity and they are finding it
difficult to secure enough wood to keep them running. Stumpage prices have
improved in North Alabama, NE Mississippi and Central Tennessee. However, prices
are exceptionally good in Central Alabama.
Pine pulpwood. Like the hardwood paper mills, they are running at
capacity and are finding it difficult to secure enough wood to meet their needs.
While you may be able to move clear-cuts, do not expect much of an increase in
prices for standing timber.
The bottom line is that this is a good time to sell standing timber. Buyers are
scrambling to secure sites that can be harvested during wet weather and are
paying a premium. Thank you for your time.
Billy Rye, President
