The Wait is Over… It’s time to Sell!
Yes, as hard to believe as it may sound, hardwood timber markets have rebounded on a strengthening lumber market and landowners are reaping the benefits! As of this writing, markets for stumpage sales are strong across all FORECON, Inc. offices spanning New York, Pennsylvania and West Virginia. We last reported that timber prices were getting stronger in 2012 and were continuing into 2013. Calendar year 2013 saw continued improvement, and now 2014 is proving to shape up into a robust market for most all of our major species. We continue to see the biggest improvements in NY and PA in terms of both competition on timber bid sales and on final bid price.
This is a great time to be selling timber! White woods continue to be in demand and are commanding excellent prices. In conversations with many sawmill owners and as discussed in the Hardwood Market Review and the Export Review publications, the amount of lumber in the market continues to be limited, thus driving up the price of our standing timber.
Hard Maple
Hard Maple has been in high demand and it shows in the prices being paid. It’s currently averaging between $600-$750/MBF (Doyle) in PA and NY; an average value of about $650/MBF holds true for most stands of good quality material with bidding taking sales all the way to $800-$900/MBF! This is a terrific value being paid, more reminiscent of pre-recession prices for good quality maple. Strong competition is resulting in strong pricing.
Soft Maple (Red Maple)
Soft Maple (Red Maple) is also continuing to bring solid prices. Average soft maple prices range from $300-$400/MBF (Doyle) between NY and PA, with many sales bringing offers of $500-$600/MBF for good quality trees.
Red Oak
Red Oak sales are the “talk of the town” lately. We have been experiencing quite an increase in demand and value for this species. We last reported average pricing in the $580/MBF (Doyle) range, with sales averaging $500-$600/MBF. That has improved now to $600-$700/MBF, with many sales of good quality, large volume per-tree red oak selling at prices between $800-$900/MBF. There is no doubt that many operations are happy paying $500-$700/MBF on a daily basis where they can buy direct without having to bid. Current sales we have held show that this is a good time to consider selling some oak, especially on bid.
White Ash
White Ash continues to be in favor in the “white wood” marketplace. Offers continues to be strong for this species, with average pricing in the $300-$400/MBF (Doyle) range, while bid prices being paid for good quality stock are in the range of $500-$600/MBF, sometimes more.
Black Cherry
Even Black Cherry has moved the needle just a little bit (which is more than we have been able to say in many years). Many landowners continue to wait for this species to “recover” to pre-2008 pricing. That has not happened and as we reported in the last issue of the Woodland News, what we have been seeing is the new normal for this species until something major changes in the tastes and preferences of consumers in the global marketplace. The market has remained steady with black cherry stumpage sales ranging from $800-$1,000 (Doyle) in NY and $800-$1,200 (Doyle) in PA. Some minor movement in pricing has been observed in sales of good quality, larger diameter material that have shown prices as much as $100-$200 more per MBF offered than those reported. While not nearly as dramatic as other species, it is showing some improvement.
Forest management and experienced timber marketing produce the best results for forest landowners and your forest long-term. FORECON, Inc. offers no-cost consultation to determine if it is truly the right time for you to enter the timber marketplace. Let us put our knowledge of forest management and our competitive timber bidding process to work for you and your forest today.