Forest2Market Monthly News
The Relationship between Demand and Forest Productivity in the US South

By Hannah Jefferies
In this continuing series, we explore results from Forest2Market’s  recently-published report on forests in the US South. Parts 1-3 cover the first four key findings.




Accurate Forecasting: There Is No Substitute for a Precise Starting Point

By Pete Coutu
How much does the changing price of oil affect raw material cost? What impact will the changing value of the US dollar have on the future business environment? When the Federal Reserve changes interest rates, what effect will it have on business?

Continue Reading...
US South Timber Prices Continue to Drop in 2Q2017

By Gabe Rogers
Southwide timber prices during 2Q2017 continued to decrease from 1Q, with nearly all pulpwood and pine log products dropping more than -3 percent.

Continue Reading...
The Coming Lumber Gap: Part II

By Joel Swanton
Members of the Millennial generation—92 million individuals, the largest generation in American history—are anxiously waiting on the sidelines for their turn at homeownership. We are witnessing a perfect storm of sorts as Millennials begin to actively pursue household formation and homeownership only to find themselves largely priced out of a very tight market. While mortgage rates remain low by historical norms and the unemployment rate continues to drop, it’s simply not enough to convert many in this generation into homeowners. What’s causing the storm?

Continue Reading...
Southern Yellow Pine Lumber Prices Flatten in July

By John Greene
Despite a brief dip during week 28, southern yellow pine lumber prices have remained flat through June and July—possibly suggesting a period of equilibrium after a steady price decline since April’s 12-year high of $440/mbf. US housing starts rebounded more than expected in June after declining for three straight months, which helped drive demand for lumber during what is traditionally the most active part of the building season.
 
Continue Reading...
US Housing Starts Jump in June

By John Greene
US housing starts rebounded more than expected in June after declining for three straight months. Despite the early summer rally, homebuilding has lost momentum after strong gains in both 4Q2016 and 1Q2017. Economists blame the 2Q slowdown on supply issues, noting that new construction activity remains constrained by rising lumber prices and labor and land shortages, which we also noted in last month’s coverage.

Continue Reading...
Tracking Timber Prices, Seasonality and Inventories in the Great Lakes

By Pete Coutu
Wood fiber prices have trended downward in the Great Lakes region over the last two years despite an economy that is sustaining growth—slight as it may be. What is affecting this price drop and are there any indications that it may reverse course anytime soon?
 
Continue Reading...
US Forest Industry Performance: June 2017

By Joe Clark

US forest industry performance in May and June was recently reported by both the US government and the Institute for Supply Management. Total industrial production (IP) was unchanged in May (+0.2 percent expected) following a large increase in April and smaller increases in February and March. Manufacturing output did not fare as well when declining 0.4 percent in May (+0.2 percent expected); manufacturing is little changed, on net, since February.


 Continue Reading...
EU Forest Management Policy Must Focus on Long Term

By John Greene
Mårten Larsson, senior vice-president of the Swedish Forest Industries Federation, recently penned an article that cuts right to the heart of the disconnect that exists between members of the global forestry industry and many of the administrative entities that are charged with their oversight. Administrators the world over tend to be impatient and forests don’t grow overnight, which makes for a challenging dynamic when it comes to managing forests and the many raw materials derived from them.
 
Continue Reading...