Market Report 2nd Quarter 2021

Our assessment of market conditions is derived from published market reports, as well as sales conducted by Tennessee Timber Consultants. Overall, hardwood sawtimber markets saw slight improvements during the latter half of the 3rd Quarter. Our hardwood sales are generating considerable buyer interest with offers at or above expectations. We are currently recommending the sale of all species and products of domestic and export hardwoods. 

Hardwood Export Timber

Export markets have fluctuated over the last two years due to trade tensions with China and has been exacerbated from coronavirus-related issues throughout the supply chain. However, white oak veneer and exports generally remain in high demand and are bringing strong prices. Walnut and poplar demand and prices are also favorable. Red oak exports have picked up significantly over the last few months.
 
Domestic Hardwood Sawtimber

Hardwood sawtimber demand is strong at the moment, which can be attributed to market improvements over the last few months and low inventories, as well as there being a low supply on the market. White oak aside, domestic sawtimber markets have generally struggled over the past year due to coronavirus-related interruptions and shutdowns. However, demand for all hardwoods has increased substantially over the last few months.

Grade white oak continues to be the strength of domestic markets due to limited supply on the market and competition between exporters, sawmills, and stave producers. Since its peak in May 2018, red oak demand and prices have been on a downward trend. However, demand and prices for red oak has increased sharply since January and will likely continue to improve in the coming months.

Low-quality sawtimber is also drawing considerable interest; primarily, due to favorable railroad crosstie markets. Yellow-poplar demand and prices is strong for all grades.

Tracts containing oak species continue to garner substantial interest. We are also recommending the sale of soft hardwoods and tie quality sawtimber. 

Pine Sawtimber

The southern yellow pine sawlog market has struggled for more than a decade. With the explosion in the construction lumber markets since March 2020, many landowners expected an increase in the pine sawlog markets. This has yet to come to fruition due many variables, but landowners shouldn’t expect any considerable increase in log prices anytime soon.
 
Hardwood and Pine Pulpwood

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.