Market Report 1st Quarter 2017

Overview

Our assessment of market conditions is derived from published market reports, as well as sales conducted by Tennessee Timber Consultants. Overall, hardwood sawtimber markets remain favorable. Our hardwoood sales are generating substantial buyer interest and offers at or above expectations. Hardwood sawtimber is in high demand, while pine sawtimber continues to struggle.

Hardwood Export Timber

White oak veneer logs are in high demand and are bringing historically high prices. We are getting reports that walnut veneer demand and prices have increased. Red oak is favorable but, as always, red oak veneer in Tennessee is mainly sought after in East Tennessee.

Domestic Hardwood Sawtimber

Quality hardwood sawtimber is in high demand, which can be attributed in some degree to there being a low supply on the market. White oak has continued to strengthen primarily due to strong stave and grade lumber markets. Red oak prices have continued to increase over the last several quarters. Tracts containing oak species have attracted high interest. Soft hardwoods and tie quality sawtimber, including gum, maple, and ash, is in relatively low demand due to large inventories with little demand. Yellow-poplar demand and prices remain strong for all grades.

Pine Sawtimber

The southern yellow pine sawlog market has been struggling for nearly a decade, and will likely continue to do so until there is an increase in competition. Therefore, we recommend waiting for a market uptick before considering the sale of quality pine sawtimber.

Hardwood and Pine Pulpwood

Due to multiple mill closures in the region over the last couple of years, Pulpwood is currently in low demand across the board and virtually all producers are on limited delivery quotas. Typically, these prices fluctuate on a month-to-month basis depending on weather and availability, but will likely remain low for the foreseeable future.