Tree Prices In F&W Markets Trended Up In 2013 Thanks To Record Rainfall, Improving Demand

F&W President Marshall Thomas reports record rainfall plus improving demand for wood products as housing climbs out of the hole resulted in increased prices for large sawtimber to the highest level since 2010 and for small sawtimber (popularly known as chip-in-saw) since 2008.

Writing in the Winter Edition of his firm’s newsletter — The F&W Forestry Report — Thomas said tree products across the board showed improvement in 2013 due not only to the record rainfall in the southern pine belt but also to the improving economy.

“Perhaps most important are the underlying fundamentals of this recovery—pulp and paper remained in the Institute of Supply Management’s ‘Growth’ category for the 11th consecutive month,” Thomas wrote. “Housing continues to improve in most categories, with the recent leader being the October report of 1.039 million building permits —the second time this year the million mark was exceeded. Most analysts are saying that we will reach 1.3 to 1.5 million starts by 2015, which will have us back to ‘normal’ demand.”

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