Following is the August update on markets, news and other developments that impact forest landowners in F&W’s operating regions. The information in this report is based on an Aug. 27 survey of managers. We hope you continue to find these updates useful and we welcome your feedback and suggestions.
Southeast
Southeastern managers report that timber markets are normal for this time of year with prices average to increasing, but several report that in some areas they are seeing significant price increases. In Alabama, the manager said prices are rising and, while they are somewhat driven by market demand, the increase is tied primarily to a strain on supply due to the extraordinarily wet summer. “In areas where there are competing mills, prices are approaching levels that we have not seen since before the housing bubble of 2008. Prices are still on the rise in ‘lesser’ markets but could be stronger if not for mills being down or absent,” he said. The manager in northeast Florida said it is the “first time in nearly 30 years that landowners have received a raise for the timber they have grown on price alone in the hottest fiber market in the world.” In southwest Georgia, the manager says that prices are good and holding steady. In South Carolina, timber markets continue to be impacted by shortages in logging labor, contract crews, and trucking, which is resulting in some hesitancy in wood purchases. The manager for this region notes that several mills in the region are at risk of wood shortages. “Prices are good, mill demand is good, but actual wood purchases are not following the typical increases that would normally come in this type of market,” he said. In Virginia, the manager reports that the timber markets and prices are normal for this time of year.
West Gulf
Managers in the West Gulf region report that overall markets are normal, with average prices. The manager in Arkansas reports that labor shortages continue to be an issue, as loggers and mills are having a tough time getting workers. He said with COVID-19 cases increasing, he doesn’t see this situation improving any time soon. The manager in Texas says wet weather conditions have led to good prices on operable ground.
Northeast
Managers in the Northeast region report overall markets are normal for this time of year, with average to increasing prices and sales. In Vermont, the manager says that trucking has been an issue. He notes that hardwood sawlog markets are good, particularly for sugar maple and red oak, with pulpwood and chip markets more sporadic. He notes, “Spruce/fir is beginning to decline, while white pine is doing well.” In Upstate New York, the manager said mill labor shortages have some sawmills working at half capacity. He also reports that sugar maple demand and pricing are excellent. He continues, “Ash, yellow birch, and red maple are also moving well at good prices. Black cherry demand and pricing are declining after some recovery early in the summer. Softwood continues to move well although there are rumors of decreasing spruce and fir markets.” In Midstate New York, the manager says that July and much of August were wetter than normal and mills of all types are low on inventory. He notes that hard maple prices are up and still increasing.”
F&W Forestry Services, Inc.
P.O. Box 3610, Albany, Georgia 31706
email: fw_newsletter@bellsouth.net
Visit us at: FWForestry.net