Post-Katrina Sawlog Prices

[hardwood]

I've seen several reports of escalating lumber prices at places like Home Depot and Lowe's since Katrina hit, but I am wondering if those higher prices are being reflected in what the mills are paying for sawlogs?

Anyone seen any reports, or have any first hand experience selling hardwood sawlogs since Katrina?

[badpenny]

   I drive tractor-trailer for a father/son logging business, doing hardwood thinnings. Red oak sawlogs are the same now as they were last Feb at the same mill, scragg bolts are $5.00 a cord more, mostly to make up for increased fuel cost. But, the firewood end is a lot better than a year ago this time.

[Frickman]

The hardwood prices tend to lag about six months behind softwood prices. The softwood lumber is used to build the house, the hardwood to trim and furnish the house. We haven't seen any change in prices recently. I expect that hardwood cants and pallet lumber to remain strong, as many shipping pallets and other dunnage are made from hardwood. The hardwood pallets underneath new building materials should be in great demand. Ron W. might be able to correct me on this, but I think I read that close to fifty percent of the volume of hardwood lumber produced nationwide goes into pallets and other shipping materials. And as stated in other threads, the railroad tie market remains strong.

I think that the escalating prices at the big box stores may have been partly their capitalizing on bad news and folks fears of a lumber shortage. It's a free country, so more power to them. I haven't seen any reports about the damage to timber in the gulf, but their probably will be a glut of salvage timber coming to market, which should soften prices at the wholesale level/

[Ron Wenrich]

Well, you're partly right about the pallets.  The pallet business follows the automotive industry.  Just about everything on a car is shipped on pallets.  Engines, steel, tires, batteries, etc.   When the automotive business goes bust, then pallets drop.  With higher gas, either people will replace or not drive. 

But, there is a strong railroad business.  As long as they need ties, that bleeds material from the pallet stocks, and helps to keep the prices up. 

As for red oak, its on a downward trend.  Our veneer buyers are much more picky and they have lowered their prices.  Sawlogs are being reduced in price as is oak lumber.   Cherry is even falling in price.  Hard maple and hickory are the only ones that are strong.

Part of the problem is the shipping of our furniture making over to China.  I've heard parts of North Carolina are empty due to the moving of furniture plants.  Where does China get their wood?  Russia.  And that depresses the hardwood markets.

As for softwoods, futures moved the market up about $50/Mbf, but has fallen back.  Futures and the cash price are still below July levels.  So, I doubt if there is much movement in sawlog prices.  What you are seeing in the market place is panic buying.  It'll sort itself out in a couple of weeks.

[Texas Ranger]

Four hurricanes in Florida did nothing for log prices, if anything, it brought more foreign wood into the country.  Lowes now has a selection of Russian, Chinese, Chile, or Canadian plywood.

I don't see an increase in log prices.

[Woodhog]

Our softwood log prices fell 2 times in August and once in September, the mill I sell
to hinted they really dont want the logs, you have to call before you send the truckload to them...

I quit softwood and have switched to hardwood firewood till the price gets at least to the carrot leading the donkey level...