| LOCAL MARKET REPORT |
FALL 2005 MARKET REPORT
North Arkansas forest product markets are showing signs of settling down
after a turbulent market year for hardwoods and pine. Unusually dry fall
weather has created excellent harvest conditions; and local mills are in the
process of building winter log decks. Below are some spot gate price ranges
from area mills as of 20 November:
Hardwood Pine Cedar
Pulpwood: $17 ton Pulpwood: $16 ton Logs: $70 ton
Prime logs: $725 KBF* Sawlogs: $40 ton
#1 R/O logs: $625-500 KBF
#1 W/O logs: $360-325 KBF Hickory: $400 KBF
#2 logs: $450-270 KBF
#3 logs: $200 KBF
*KBF = 1,000 bard feet, Doyle Scale
______________________________________________________________
Market Analysis: After a year characterized by excess lumber supplies,
rising mill and manufacturer transportation and energy costs, and market
disruptions caused by hurricanes, hardwood lumber markets are beginning
to settle down. Sawmills, having made downward adjustments in log prices
during the summer and early fall, are now making minor price adjustments,
both up and down, in various grades of logs to reestablish their operating
margins and draw logs in to fill local lumber spot markets. Although diesel
prices are still well above gasoline prices, a general decline is giving loggers,
mill operators, and manufacturers some hope of future relief. In forecasting
the future hardwood log markets, we believe that the above price structure
reflects what we will see well into next summer.
The pine market, for the moment, is still weak Dry coastal weather following
the hurricanes has allowed salvage harvests to continue, contributing to
surplus log supplies at all mills. Meanwhile, since the hurricane devastation
was so complete, the infrastructure and skilled labor pool needed to start
coastal community reconstruction has just not started. Furthermore, if the
current dry conditions persist throughout the deep South, including south
Arkansas, there is no early indication that pine mills will look to north
Arkansas for a wet weather winter pine log and pulpwood supply. Bottom
line for pine: this is one winter to sit and sweat it out.
Cedar markets remain strong and stable with log supplies tight and lumber
sales strong. The winter season will be a good time to move cedar.
North Arkansas forest product markets are showing signs of settling down
after a turbulent market year for hardwoods and pine. Unusually dry fall
weather has created excellent harvest conditions; and local mills are in the
process of building winter log decks. Below are some spot gate price ranges
from area mills as of 20 November:
Hardwood Pine Cedar
Pulpwood: $17 ton Pulpwood: $16 ton Logs: $70 ton
Prime logs: $725 KBF* Sawlogs: $40 ton
#1 R/O logs: $625-500 KBF
#1 W/O logs: $360-325 KBF Hickory: $400 KBF
#2 logs: $450-270 KBF
#3 logs: $200 KBF
*KBF = 1,000 bard feet, Doyle Scale
______________________________________________________________
Market Analysis: After a year characterized by excess lumber supplies,
rising mill and manufacturer transportation and energy costs, and market
disruptions caused by hurricanes, hardwood lumber markets are beginning
to settle down. Sawmills, having made downward adjustments in log prices
during the summer and early fall, are now making minor price adjustments,
both up and down, in various grades of logs to reestablish their operating
margins and draw logs in to fill local lumber spot markets. Although diesel
prices are still well above gasoline prices, a general decline is giving loggers,
mill operators, and manufacturers some hope of future relief. In forecasting
the future hardwood log markets, we believe that the above price structure
reflects what we will see well into next summer.
The pine market, for the moment, is still weak Dry coastal weather following
the hurricanes has allowed salvage harvests to continue, contributing to
surplus log supplies at all mills. Meanwhile, since the hurricane devastation
was so complete, the infrastructure and skilled labor pool needed to start
coastal community reconstruction has just not started. Furthermore, if the
current dry conditions persist throughout the deep South, including south
Arkansas, there is no early indication that pine mills will look to north
Arkansas for a wet weather winter pine log and pulpwood supply. Bottom
line for pine: this is one winter to sit and sweat it out.
Cedar markets remain strong and stable with log supplies tight and lumber
sales strong. The winter season will be a good time to move cedar.
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