Timber Prices Gain Amid Wet Conditions, Hurricane Ida Aftermath
September 27th, 2021.
With the Southeastern region still feeling the aftermath of Hurricane Ida, the Timber industry has also been effected by the disaster. Current wet conditions are impacting the efficiency and volume of Timber harvesting resulting in decreased inventory for Lumber mills. The decrease in inventory is causing prices to escalate in the market and competition for Timber products has become fierce at the mills.
lumber prices have risen 30% over the last 30 days
As of writing, the price of lumber has risen from $517 to $630 per thousand board-feet, indicating an increased demand for Timber products across the market. As demand increases and supply decreases, market prices are expected to stay volatile and continue to rise into the future.
Certain timber products are seeing a meteoric rise as well. According to Forest2Market’s Stumpage 360 database, prices for pine log stumpage across the South are up 11% over 2020 prices, now reaching a 10-year high. For Southern sawmills, log costs can make up 70% of more of the mill’s total product and it is the single most important product the mill must secure. Decreased inventory within lumber mills processing pine logs has lead to increased competition for product, which results in mills pricing aggressively higher to secure business.
The devastation in the wake of Hurricane Ida is also a driving force in the market. Ida destroyed much of the viable standing Timber in some areas, further constricting supply and lumber mill inventory. Along with destroying trees, Ida has made conditions wetter and more difficult for harvesters to gather logs and other Timber products to send off to the mills.
what does this mean for you?
Escalating prices and intensifying competition for lumber mills to secure inventory lead to more profits for our customers. If you have more than 15 acres of viable ground where our equipment can function despite wet conditions, or dry elevated land with quality Timber, we are paying a premium which means more money and profits in your pocket. To speak to a buyer, contact us to cash in on the market uptrend and make the most profits possible for your Timber!