2Q2010 Pine Sawtimber Prices Delivered to Sawmills in the South

Pine sawtimber inventories at mills dropped in the first quarter of 2010, despite heightened lumber demand. As a result of this imbalance, pine sawtimber prices climbed through April 2010. Virtually all of 2Q2010’s price increase came in April, an increase of just over $1/ton to $44/ton. Since then, mills have replenished their inventories and cut production, causing prices to level off.

“Now that inventory is back to its second half 2009 level and high demand for lumber has dissipated,” said Stuber, “mills have been cutting production. We expect to see prices drop through the middle of September. Though we may see a little upward movement in price due to seasonal buying in the fall, overall the trend looks like it will be downward.”

The purchased volume of pine sawtimber was nearly 10 percent higher than first quarter’s volume.