Tuesday, March 6, 2012

Timber Market Recovery

The below article was highlighted in the Society of American Forester's E-Forester.  I thought I would share it with my readers.  It is written from a southern perspective but it is just as applicable to Pennsylvania as it is to Mississippi.

Also, in reference to timber markets I wanted to be sure you all were aware of the Penn State Extension Timber Market Report.  This report is prepared at the end of each quarter and tracks both stumpage and mill prices across 4 regions of Pennsylvania.  Ten year trend data is also available.  For example, the ten year price data shows black cherry prices down just over 10%.

Here are Dr. Jacobson's comments on the 4th quarter of 2011:
"This is the first quarter in a while where, on average, most individual species prices have nudged upward since the previous quarter. The increase is minimal but it does suggest some stability in the markets as the trend is positive. Factors for this up tick include rebuilding low inventories, higher bids on public lands, and stronger export markets. Higher grade lumber is still relatively weak compared to other products."
Timber market recovery hinges on economy and housing upturn
Hembree Brandon, Delta Farm Express, February 27, 2012
U.S. timber and lumber sales have taken a major hit as a result of the housing bubble collapse and the economic recession that began in 2008, says James Henderson, and while there has been a glimmer of improvement in the market — thanks in part to China — it may be 2015/2016 before housing starts boost demand to pre-recession levels.

To read the full story click here.

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