Forest2Market Monthly News

December Poll

How will current economic, trade and political conditions impact forest industry investment in 2020?
Results From November's Poll

Panel and lumber prices have disappointed for most of 2019. Will recent curtailment announcements affect pricing through 1Q2020?
Can US Hardwood Exports Outlast the Global Trade War?

By Jay Engle
In November 2017, we published a comprehensive analysis covering the Northeast and Appalachia that illustrated the large increase in hardwood log and lumber exports from those regions that were going to China, and the downward trend recorded for exports headed to other countries. A mere two years later, we are witnessing just how fast international markets can change.

Pine Pulpwood: Driving the Southern Timber Price Rebound

By Joe Clark
We are more than a decade removed from the depths of the Great Recession and despite 10 years of solid growth, timber prices across the South have still not returned to the pre-crash levels of the early 2000s. The primary reason for this is rooted in a basic supply/demand relationship, as the trees are simply growing faster than the market for them.

Log & Lumber Parity: Are PNW Producers Back in the Game?

By Joel Swanton
It’s been a crazy two years for the Pacific Northwest (PNW) log market. Beginning in 4Q2017, prices for domestic and export Douglas fir logs in the region rose steadily before they spiked in 2Q2018 to their highest levels since Forest2Market began reporting them via our Delivered Wood Raw Material Price Benchmark for the Northwest US and Southwest Canada. Prices for Hemlock/fir logs also followed the same trajectory, though they demonstrated less volatility at lower price points.

Surplus of Beetle-Damaged Timber Impacting European Forest Industry

By Agris Melnis
Over the last several decades, a combination of devastating wildfires and pest infestations have destroyed millions of acres of timber in the western US and Canada. The European forest community has watched this with some mix of disbelief and a hope that a similar situation couldn’t arise here. However, many European forests are now experiencing dire effects from a combination of drought, excessive heat, severe storms and an infestation of the Spruce Bark Beetle, and the situation is dramatically impacting the European roundwood market. 

Southern Timber Prices Continued to Slide in 3Q2019

By John Greene
After skyrocketing in 1Q2019 due to prolonged wet-weather challenges, southern timber prices reversed course sharply in 2Q and the trend continued through 3Q2019. While pulpwood products decreased at a slower rate into 3Q, pine sawtimber products continued a surprising, yet precipitous drop. The overall trend of all timber products—with the sole exception of hardwood sawtimber—was on a slide in the third quarter, as the weighted average price per ton decreased 7.7 percent.

Southern Yellow Pine Lumber Prices Volatile in November

By John Greene
Southern yellow pine lumber (SYP) prices demonstrated relatively flat performance throughout October. As a reminder to just how fast the market can change, however, prices then went haywire in November and have demonstrated significant volatility on the heels of the NAWLA conference.

North American Panel Prices Recover as Building Season Winds Down

By Keta Kosman
Construction framing dimension softwood lumber prices have risen slightly in recent weeks, while oriented strand board (OSB) and plywood prices have absolutely soared. There are fewer panel producers than there are dimension lumber manufacturers in western North America (on a relative basis), and they are typically more disciplined with their production volumes during times of soft demand.

Housing Starts Improve, Permits Soar in October

By John Greene
While low mortgage rates and record low unemployment have buoyed the housing market in recent months, housing starts are still struggling to get into positive territory for the year. YTD starts are down 0.6 percent compared to 2018 despite posting moderate gains in October, but new housing authorizations suggest growth could be around the corner.

US Forest Industry Performance: October 2019

By Joe Clark
Total industrial production (IP) fell back 0.4 percent (-0.1 percent YoY) in September after advancing 0.8 percent in August. For 3Q, IP rose at an annual rate of 1.2 percent following declines of about 2 percent in both 1&2Q. Manufacturing production decreased 0.5 percent in September, with output reduced by the strike at General Motors. Excluding motor vehicles and parts, the overall index and the manufacturing index each moved down 0.2 percent. Mining production fell 1.3 percent, while utilities output rose 1.4 percent.

Gordon and Gail Culbertson Win Oregon Tree Farmers Award

By Forest2Market
Forest2Market would like to join the Oregon Tree Farm System (OTFS) in congratulating our own Gordon Culbertson as winner of Oregon’s 2019 “Outstanding Tree Farmers of the Year” award. Gordon and Gail Culbertson were recently selected as winners of the award at the Oregon Farm System’s Annual Awards Luncheon in Silverton’s Oregon Gardens.