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Betsy Bates

Mediocre Demand And Aging Forests Weigh On Timber Markets

July 17, 2017/0 Comments/in news-2017 /by Betsy Bates

Despite the steady rise in housing starts, a primary driver of demand for wood products, timber markets are muddling, the head of one of the nation’s largest forest management firms writes in his firm’s quarterly newsletter.

Marshall Thomas, president of F&W Forestry Services, which operates across the major forested regions of the Eastern U.S., said in his firm’s summer newsletter that the current state of timber markets can be explained by the theory of supply and demand.

“Demand, in my opinion, still remains an issue,” Thomas said. “While housing starts have increased, they haven’t reached the magic level of 1.3 million units per year, which seems to be the accepted level at which demand begins to impact [timber] prices at normal supply levels.”

But Thomas also said there is an oversupply of softwood sawtimber, caused by the aging forest and the drop in the demand for wood during the recent recession.

“The aging forest means that we have a disproportionate amount of large trees, and the reduction in harvests has resulted in a buildup of supply,” Thomas added. “Prices will improve when all those factors balance.”

TO SEE THE FULL ARTICLE IN THE SUMMER 2017 F&W FORESTRY REPORT, SUBSCRIBE NOW

Betsy Bates

Timber Prices Remain Flat Despite Upward Trajectory Of Housing Starts

April 11, 2017/0 Comments/in news-2017 /by Betsy Bates

Housing starts are finally approaching 1.3 million starts per year, a level that traditionally has led to upward pressure on sawtimber stumpage prices. However, there are factors at work that could undermine this pressure on prices, the head of one of the nation’s largest forest management firms reports.

Marshall Thomas, president of F&W Forestry Services, Inc., reports in his firm’s spring newsletter that while housing starts are approaching this milestone level, there is likely to be a delay in a corresponding increase in timber prices.

“It may be traditional wisdom doesn’t apply for two reasons,” Thomas writes. “First, we have too much standing inventory of pine sawtimber, and second, the houses being built today may not use the same amount of lumber that was used prior to the recent housing crisis.”

TO SEE THE FULL ARTICLE IN THE SPRING 2017 F&W FORESTRY REPORT, SUBSCRIBE NOW

Betsy Bates

Timber Prices Remain Flat Despite Wet Weather

April 29, 2016/0 Comments/in news-2016 /by Betsy Bates

While the New Year started off on a promising note with housing starts on the rise and predictions of a wet winter ahead, timber stumpage (standing tree) prices remained steady to declining in the first quarter of 2016, the head of one of the nation’s largest forest management reports.

Marshall Thomas, president of F&W Forestry Services, Inc., one of the nation’s leading forestry management and consulting firms, reports in his firm’s quarterly newsletter that timber prices didn’t “kick-up” as anticipated in the first quarter.

“Unfortunately, while we had plenty of wet weather, prices didn’t go up much or stay at increased levels long,” wrote Thomas.  “Just another illustration that we still have a supply/demand problem for sawtimber in the U.S.”

“Worse yet, housing starts stayed flat during the first quarter, once again moving upward more slowly than most forecasts,” Thomas added. “We are certainly in a recovery but it is slow and dull.”

TO SEE THE FULL ARTICLE IN THE SPRING 2016 F&W FORESTRY REPORT, SUBSCRIBE NOW»

Media Contact

Betsy Bates 
770.451.0370
 [email protected]
Find out more about F&W and their extensive expertise.

Media Contact

Betsy Bates 770.451.0370 [email protected]

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