1 0 obj
Based on these tremendous shifts in the market, I wanted to draft an update of our most popular blog post ever (How Much Money is an Acre of Timber Worth?) Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. Whatever your management plan say do, do it. Products – Some geographical areas are known for specific products that may not grow well elsewhere. Timber Update exists to give landowners access to timber companies that compete for your business. Interactive Business Intelligence Platform.
Couple this lagging effect from unharvested timber with a lower consumer demand and Chinese tariffs and you’ve got a recipe for static timber prices or in some cases, lowered prices. Notify me of follow-up comments by email. When there’s less competition, because of any number of factors, the price goes down. Check out our new Timber Products page for an in-depth guide to the different types of timber products, definitions of common forestry terms, and videos of the milling process. Historically, Lumber reached an all time high of 1000 in September of 2020. For sellers, a trained forester is essential to provide insight into local market dynamics and help determine an accurate amount of merchantable wood that exists on an acre of timberland. The timber industry in Georgia: Is the #1 forestry state; Has an economic impact of around $36.3 billion annually; Is #3 among manufacturing industries, providing 148,414 jobs Consists of 24.1 million acres … This is a closed group. States are very similar to regions, because the market effect on timber prices is universal. Direct access to our calendar releases and historical data. The clearcut price per acre on natural pine stands is slightly higher due to the presence of some hardwood sawtimber that is harvested along with the pine during a clearcut, which carries a higher price than pine in the current market. Share. 1978-2020 Data | 2021-2022 Forecast | Price | Quote | Chart | Historical. In the South, stumpage is most often quoted in dollars per ton of wood, so we used that measurement to arrive at our values. hbspt.cta._relativeUrls=true;hbspt.cta.load(299583, '4c344714-8bd4-4eef-9ee7-ef4fbd63d5a6', {}); Subscribe to Forest2Market's email updates, right in your email, North America - Charlotte Headquarters+1.704.540.1440. If mills need wood, prices go up. Below, you can find relatively current 2020 timber prices and comments regarding different timber … Saw Log NOTES: ALL SAW LOGS REQUIRE 6″ TRIM. 2. ... Our timber price database is continually updated and contains comprehensive sales data from more than $6 billion in actual timber transactions across the entire region. Well…. Extreme... After blasting past the previous all-time high achieved in 2018, southern yellow pine (SYP) lumber prices are now at... Australia’s softwood log exports exploded to a new monthly record in June, with total exports reaching a massive... We provide detailed transactional data, cost benchmarks and in-depth analytics for participants in the wood raw materials supply chain. Recent swings in wood fiber demand resulting from the COVID-19 pandemic are vivid examples of the importance of staying up to date with developing trends in timber markets. Summarized timber price information specific to Arkansas is provided by Timber Mart-South. endobj
The report lists price data for sawlogs delivered to the mill ad for stumpage. During thinnings on natural stands, more material is therefore typically removed, resulting in an increase in volume and price per acre. © 2020 Timber Apps, LLC. Since we’re talking dollars and cents, it’s always instructive to stay abreast of market movements during periods of significant turbulence. Manage Raw Material Price and Plan for Success During Budgeting Season.
The Trading Economics Application Programming Interface (API) provides direct access to our data. From biomass suppliers in the Baltics to pulp producers in Brazil and TIMOs in the United States, Forest2Market provides products and services for suppliers, producers and other stakeholders in the global forest products industry.
All rights reserved. This new update will provide more detail by looking at values over a full 3-year period (2017-2019). <>/Font<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
Australian Softwood Log Exports Surged in June, Logs 5”-7” diameter at breast height (DBH) are considered “pulpwood”, Logs 8”-11” DBH are considered “chip-n-saw” (CNS), Logs 12”+ DBH in diameter are considered “sawtimber”. Thinning values per acre for CNS and small sawtimber in the 16-25 age classes were up in 2018 but dropped markedly in 2019—a sign that supply of these products outpaced demand in that year. Timberland owners in the US South who manage their land for timber production predominately manage for the growth of large pine logs. endobj
All Rights Reserved. MDC … SAW LOG PRICES. The geography, measuring system and products may be completely different, but the market operates in a similar way. [i] “Stumpage” is the term used for the purchase price of standing timber and the rights to harvest that timber. COVID-19 along with wet weather has created a situation where wood mills are full of inventory and don’t need to buy additional inventory. Luckily for this industry, forestry jobs and services are considered essential, so many of us have been able to continue working. Thinnings of CNS and small sawtimber in the 16-25 ages classes command a higher price per ton than pulpwood, but the price differential between the age classes is minimal. Which means they held onto a mature investment for nearly 10 years without replanting and allowing a new investment to grow. Remember that one of the most valuable sources for information on log and timber markets is the local Missouri Department of Conservation Resource Forester or your Consulting Forester. Prices are based on an average calculated from a sample of timber buyers across the U.S., and only intended to provide an estimate of trends and current prices. There are a couple of considerations to keep in mind when analyzing the natural pine data: In the chart above, the expected higher stumpage value for clearcut timber sales is evident. endobj
Before we can determine how much an acre of timber is worth, we first need to understand the law of supply and demand ultimately drives the price of timber. However, it is important to note a clearcut will remove all standing timber on a tract of land, which, even in the case of a managed forest in the 26+ age class, will include both pulpwood and chip-n-saw logs. Download historical data for 20 million indicators using your browser. If you’re supposed to harvest, then harvest. As detailed in the data above, there can be significant yearly swings in timber prices based on product type, age class and harvest type. Not surprisingly, first thinnings of young timber brought lower prices from 2017-2019 due to the smaller trees that were removed; only pulpwood and smaller logs that fall into the chip-n-saw category are harvested at this time. As a result, the size of the trees removed during thinnings and clearcuts are quite different and therefore vary in value. *Prices shown are based on per ton stumpage price. However, there are several other factors that influence the price of timber by region: Mills – Mills are the foundation of established timber markets, because they determine what products can be bought and sold. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Stumpage price statistics include gatewood sales. It costs you nothing to get connected with a company in our network. Lumber prices surged to an all-time high of almost $1000 on September 14th, as do-it-yourselfers, inspired by government stimulus checks, took on home renovations during pandemic lockdowns as homebuilders broke ground on an increasing number of new projects.
With that said, let’s explore the question…. This kind of information can be very useful in determining emerging market trends, which can be used to guide operational and strategic planning for both sellers and purchasers of pine timber. Even-aged plantation pine stands typically experience 1-2 commercial thinnings and one final commercial harvest, or clearcut. The further they have to travel, the more gas they will use and the higher their costs will be. Which means that, in much of the world, they’ve lowered quotas or even stopped taking wood altogether. The impacts of holding on to mature inventory were two-fold: Ironically, when a large percentage of landowners don’t harvest their mature timber, as they chose to do between 2008 and now, the market is negatively impacted to an even greater degree due to the spike in unharvested or excess inventory. I also analyzed US South prices for natural pine stands by harvest type (concise age class data is unavailable for these harvests). Save my name, email, and website in this browser for the next time I comment. Required fields are marked *. Distance – Wood has to be delivered to a mill before it’s processed. Some obvious and expected trends can be detected from the data above, namely, clearcut harvests of older timber are more valuable per acre. 3 0 obj
Timber prices are directly affected by the forces of supply and demand. Timber Prices. If mills don’t need wood, prices go down. The latest on timber prices in Missouri. Your email address will not be published. Below, you can find relatively current 2020 timber prices and comments regarding different timber markets around the U.S. Competition – Ultimately, timber markets are driven by competition. The increased timber volumes combined with a mix of hardwood sawtimber will result in a higher price per acre. If you’re supposed to thin, thin. In turn, some areas will have higher prices than others, because markets exist as a result of their products. to provide some revised trends, context, and related information about the value of pine timber per acre. And since supply and demand is usually on full display in timber markets, a greater supply means that there is lower demand. Your email address will not be published. General market and economic conditions, as well as local considerations such as accessibility, terrain, sale size, and tree size and quality also affect the price paid. These prices represent statewide averages for pine and hardwood timber products. 2 0 obj
<>
When there’s more competition over wood due to any number of factors, the price goes up. <>
Prices for timber products can vary considerably even from county to county in a specific region based on demand. . Missouri Timber Price Trends, Qtr. In 2008 a lot of landowners held onto their mature timber (ready to be harvested) due to suppressed markets and did not pursue a timber sale for almost a decade. Lumber is wood that has been processed into beams and plank. Couple this lagging effect from unharvested timber with a lower consumer demand and Chinese tariffs and you’ve got a recipe for static timber prices or in some cases, lowered prices. 2, 2020.