Prospects for El Niño Event Brighten Outlook for Timber Markets

Timber prices in the second quarter were stronger than a year ago and with the National Oceanic and Atmospheric Administration forecasting a high probability of an El Niño event this fall and winter, the outlook appears encouraging for tree growers.

Marshall Thomas, president of F&W Forestry Services that operates across the southern pine belt as well as the central and northeast forested regions of the U.S., said this climatic condition could mean wetter than normal conditions in the South.

“Wetter than normal conditions have the potential to limit the supply of trees that can be logged due to wet ground conditions and impassable dirt roads. Constant demand and reduced supply typically results in an increase in price,” Thomas writes in the summer edition of his firm’s newsletter, The F&W Forestry Report.

“Throw in the likelihood that demand will actually increase during this period—albeit slowly—and we have the makings of a very Merry Christmas for timber growers,” Thomas said.  

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