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Trade War, Dry Weather Conditions Impact Timber Markets

October 7, 2019/0 Comments/in news-2019 /by Betsy Bates

The trade war with China continues to have a negative impact on timber markets, with hardwood and softwood stumpage (standing timber) prices down almost everywhere in the third quarter.

“Timber prices in the South were down … But it’s late summer and dry, so it is typical for prices to be down this time of year,” writes Marshall Thomas, president of F&W Forestry Services, Inc., in his company’s fall newsletter.  “Odds are when it starts raining, prices will rise again.”

But the situation is more dire for hardwood markets.

“In the Northeast, timber prices are really down almost everywhere.  In fact, red oak and black cherry are down from the previous year by 18 and 19 percent respectively,” Thomas wrote.  “This is entirely due to the trade war with China.  Northeastern hardwood lumber producers rely heavily on the Chinese market, and hardwood exports to China are down 41 percent over the first six months of 2019 compared to the first six months of 2018.”

TO SEE THE FULL ARTICLE IN THE FALL 2019 F&W FORESTRY REPORT, SUBSCRIBE NOW

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