Overview of October 2010 Log Prices in the Pacific Northwest

Continuing the upward trend from last quarter, October prices for Douglas fir logs destined for sawmill-plywood production in the Westside of Oregon and Washington were up more than 5%. Increases have been the most pronounced in the Southern Willamette Valley. Washington prices for small Douglas fir moved upward as well.

Export buyers continued to be very competitive, aggressively pursuing volume. Timber Investment Management Organizations (TIMOs) and other log sellers have ratcheted back logging operations, resulting in the lowest harvest levels in recent times. Log price increases are being driven by limited log volumes and a desire to stimulate more production in anticipation of firming product prices and improved future demand.

Inland Empire Douglas fir and hem-fir log prices remained relatively flat the past month.

There was little change in PNW wood chip prices for October. Pending pulp and paper mill closures and the expiration of black liquor tax credits will likely put downward pressure on chips in coming months. Pulpwood and whole log chips in western Oregon will be most subject to surpluses as a result of slowed demand.

For more information on the Delivered Price Benchmark Service covering the Pacific Northwest, click here or call Gordon Culbertson at (541) 302-8010.