Market Report 3rd Quarter 2019

Overview

Our assessment of market conditions is derived from published market reports, as well as sales conducted by Tennessee Timber Consultants.

Hardwood Export Timber

Hardwood exports have slowed considerably due to tariffs and uncertainty in Chinese markets.  White oak exports are still bringing favorable prices, while walnut and red oak exports are struggling.

Domestic Hardwood Sawtimber

Domestic hardwood markets have remained favorable, but uncertainty in international markets continue to overshadow it. Grade white oak and staves remain in high demand, as is yellow-poplar. Grade red oak is currently in low demand and prices have dropped significantly. Soft hardwoods and tie quality sawtimber, including gum and maple, has remained strong.

We are currently recommending delaying the sale of tracts containing a large component of grade red oak. Conversely, we are recommending the sale of tracts containing a significant percentage of mixedwood and poplar.

Pine Sawtimber

The southern yellow pine sawlog market has been struggling for more than a decade; however, demand for pine sawtimber appears to have slightly strengthened over the last several months due to unusually wet weather.

Hardwood and Pine Pulpwood

With the reopening of the Phoenix Paper mill, hardwood pulpwood should become easier to move over the coming months. Pine Pulpwood is currently in low demand 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.