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Hardwood and softwood prices.

Started by Mr Mom, March 02, 2006, 08:28:54 AM

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Mr Mom

     I see in the forums alot of how much is this tree worth.
     My qusetion is can there be a set price for hardwood and softwood?? I know that the trend is that when someone gets a mill people have trees to sell.
    I was talking for like say 5 trees or so. Log size would start at 10" on up.
    I know the type of tree have diffrent prices.
   
    Hardwoods.....$300 per thousand
    Softwood........$150 per thousand
   
    The prices are for when people come to me to sell.
    Theres are just numbers i thought of.
    I know that if i buy logs i will have to pay the going price.
    The prices would be fair for both people.

    I know that this kind of question is not going to be easy to answer or not have an answer.


     Thanks Alot  Mr Mom
   

     

Skip

Check with your states timber market report it will list current timber prices by the mbf in WV its ahc.caf. wvu.edu

rebocardo

> My qusetion is can there be a set price for hardwood and softwood

No, market conditions (supply and demand) set prices. Same as with everything else including Americans buying overseas oil or someone overseas buying American wheat. Distance from supply for a bulky item has a lot to do with price.

Unless a government of a country sets the prices, there is never a set price.

As soon as you say "well, for this type wood, this is a fair price" someone else will come along and say "we only pay 1/3 for that here".

I have used what I would call small cedar, maybe 14 DBH, for firewood, that others in another country would pay $10 BF.

imo,

I think a rough rule of thumb for local prices (green) is to go to Home Depot. 

pine divide by 4
oak divide by 10

that would be the MAX. you should pay for a log, for lumber you plan on reselling air dried.


Mr Mom

     Thanks alot guys,so the flat rate price is out of the question.
     That is what i was thing of but i thought i would ask.

     I did copy the Ohio timber price report for fall of 2005.
     I will use it in my pricing.


     Thanks Alot Mr Mom.
     

Ron Wenrich

There is absolutely no way you can price hardwood at a flat price, and be fair to both the buyer and seller.  Would you pay the same price for cherry as you would aspen?  Doubtful.

There are just too many variables to set a price even for one species.  A veneer quality tree is worth much more than one that has been surpressed and is full of knots. 

The larger the tree, the higher the proportion of clear lumber.  Clears bring a good price, while below grade pieces will just sit around your lumber yard. 

The values you see on those timber sheets are averages.  Some sales were sold at a higher price, and some were sold at a lower price.  It should give you a range to work in, but the value of any particular tree is really subjective to the yield, and the difficulty in removal.
Never under estimate the power of stupid people in large groups.

Mr Mom

     Thanks Ron i was just thinking oneday about it.
     I have a habbit of think and coming up with stupid questions.
     


     Thanks Alot Mr Mom

Ron Wenrich

They're not stupid questions.  I bet a lot of guys had the same question.  But, you asked, and now you know. 8)
Never under estimate the power of stupid people in large groups.

wmrussel

Quote from: rebocardo on March 02, 2006, 11:15:16 AM

I think a rough rule of thumb for local prices (green) is to go to Home Depot. 

pine divide by 4
oak divide by 10

that would be the MAX. you should pay for a log, for lumber you plan on reselling air dried.



By this do you mean you can estimate local delivered prices by going to Home Depot (Lowes, etc...)?  I have a decent idea of local prices in my area and will try that out.  If so, I guess dividing pine by 4 would give you a price for chip n saw if it's a 2x4 and and sawtimber if you do the same math on larger boards?  I would assume there is some time lag between these prices and what's being paid at the mill?   Thanks in advance!  I'm new to the forum.

Cheers,

Pete
My name is William, but people call me Pete.  Long story......

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