Lake States Timber Market and Stumpage Snapshot – February 2013
Timber markets exhibited some fluctuation in 2012; however, the general tone surrounding roundwood markets suggests stable conditions. Pulpwood markets saw pressure on stumpage pricing later in the year, as many mills met or exceeded inventory goals by the fall of 2012. This was mainly contributed to above average logging conditions in the region throughout most of the 2012 growing season, as much of the mid-west was in a severe drought. As a result, interest in timber sales has been poor, as many logging firms are having difficulty moving wood. Aspen stumpage has seen the greatest impact across the region. Correspondence with industry contacts suggests that many loggers have an adequate supply of timber sales at this time as well.
Mixed hardwood cordwood has exhibited more stability, while hardwood bolts and logs saw modest and consistent gains throughout the past few months. Boltwood and sawtimber markets improved throughout 2012, and the outlook for 2013 looks promising as well. The results of recent timber sale bid openings suggest that hard maple and other “white woods” have seen the largest and most consistent positive price movement since the housing market crash (refer to the Sawtimber Stumpage Trends figure below). Timber sales with quality sawlogs are attracting surprisingly high stumpage rates as well as aggressive competition. In addition to these encouraging trends, the rebound of residential building permits on a consistent monthly basis is creating optimism throughout the industry. Further, total U.S. exports of hardwood lumber in 2012 are over 11 percent higher from what was reported for 2011 (Hardwood Market Report – January 4, 2013). The success of timber markets in 2013 will certainly follow the response of housing and wood product exports in the months to come.
The following tables exhibit trends consistent with our above summary. Aspen and mixed hardwood pulpwood look to be stabilizing around the $40.00 per cord mark, and red pine continues to exhibit seasonal fluctuation, albeit trending positive since 2009 (refer to Pulpwood Stumpage Trends figure).
The following charts depict historic stumpage trends for north central Wisconsin.
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Download February 2012 timber pricing report