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A growing labor market, low mortgage rates, and strong economy have helped to grow the housing market in the United States. There was a strong surge in housing activities in De- cember and 2014 ended with housing starts over the one million mark. With falling oil pric- es, there are concerns for overall health of housing market in oil-producing regions of Texas. A reporter noted that hardwood timber prices continue to remain strong in Texas. Statewide pine sawlog prices averaged $28.17 per ton, down 10% from last period and up 32% from the price a year ago. Aver- age pine sawlog price was $27. 21 per ton in Northeast Texas and $28.79 per ton in South- east Texas. The statewide average pine pulpwood price was $8.79 per ton. This was slightly up from last period and up 10% from the price a year ago. In Northeast Texas, the average pine pulpwood price was $8.42 per ton. It was $8.93 per ton in Southeast Texas. Small diameter pine sawlogs (CNS) averaged $14.90 per ton statewide, up 3% from last pe- riod. It was up 26% from the price a year ago. The statewide average mixed hardwood saw- log price was $38.00 per ton, 3% higher than last period and 39% higher than the price re- ported a year ago. The average hardwood pulpwood price was $13.67 per ton, 13% lower than last period. In Northeast Texas, the average price was $14.05 per ton. It was $13.27 per ton in Southeast Texas. *The average prices reported here represent statewide volumes of 79,389 tons of pine sawlogs, 509,552 tons of pine pulpwood, 68,690 tons of pine CNS, 7,115 tons of mixed hardwood sawlogs, and 29,261 tons of hardwood pulpwood during Novem- ber/December 2014. Market Overview* A Bimonthly Market Report Vol. 32 No.6 November/December 2014 Texas Timber Price Trends

Texas Timber Price Trends

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Page 1: Texas Timber Price Trends

A growing labor market, low mortgage rates,

and strong economy have helped to grow the

housing market in the United States. There

was a strong surge in housing activities in De-

cember and 2014 ended with housing starts

over the one million mark. With falling oil pric-

es, there are concerns for overall health of

housing market in oil-producing regions of

Texas. A reporter noted that hardwood timber

prices continue to remain strong in Texas.

Statewide pine sawlog prices averaged

$28.17 per ton, down 10% from last period

and up 32% from the price a year ago. Aver-

age pine sawlog price was $27. 21 per ton in

Northeast Texas and $28.79 per ton in South-

east Texas.

The statewide average pine pulpwood price

was $8.79 per ton. This was slightly up from

last period and up 10% from the price a year

ago. In Northeast Texas, the average pine

pulpwood price was $8.42 per ton. It was

$8.93 per ton in Southeast Texas.

Small diameter pine sawlogs (CNS) averaged

$14.90 per ton statewide, up 3% from last pe-

riod. It was up 26% from the price a year ago.

The statewide average mixed hardwood saw-

log price was $38.00 per ton, 3% higher than

last period and 39% higher than the price re-

ported a year ago.

The average hardwood pulpwood price was

$13.67 per ton, 13% lower than last period. In

Northeast Texas, the average price was

$14.05 per ton. It was $13.27 per ton in

Southeast Texas.

*The average prices reported here represent

statewide volumes of 79,389 tons of pine sawlogs,

509,552 tons of pine pulpwood, 68,690 tons of pine

CNS, 7,115 tons of mixed hardwood sawlogs, and

29,261 tons of hardwood pulpwood during Novem-

ber/December 2014.

M a r k e t O ve r v i e w *

A Bimonthly Market Report

Vo l . 32 No .6

Novemb e r /Decem be r 201 4

Texas Timber Price Trends

Page 2: Texas Timber Price Trends

T e x a s T i m b e r P r i c e T r e n d s P a g e 2

Product /Region Average Price Last Period Year Ago Report

PINE

Sawlogs $/Ton $/MBF $/Ton $/MBF Chg $/Ton $/MBF Chg Number

Northeast TX $27.21 $225.73 $27.02 $224.59 1% ↑ $23.90 $198.91 14% ↑ 16

Southeast TX $28.79 $230.28 $33.46 $255.03 -14% ↓ $20.68 $165.44 39% ↑ 6

Statewide $28.17 $228.53 $31.17 $244.78 -10% ↓ $21.39 $172.63 32% ↑ 22

USFS ** ** ** ** ** ** ** ** **

Pulpwood $/Ton $/Cord $/Ton $/Cord Chg $/Ton $/Cord Chg Number

Northeast TX $8.42 $22.53 $7.68 $20.26 10% ↑ $7.11 $19.14 18% ↑ 35

Southeast TX $8.93 $24.11 $9.01 $24.31 -1% ↓ $8.31 $22.43 8% ↑ 38

Statewide $8.79 $23.66 $8.77 $23.58 0% ↑ $7.96 $21.48 10% ↑ 73

USFS ** ** ** ** ** ** ** ** **

Chip-N-Saw $/Ton $/Cord $/Ton $/Cord Chg $/Ton $/Cord Chg Number

Northeast TX ** ** ** $12.00 $32.40 ** **

Southeast TX $14.90 $40.23 $14.06 $37.95 6% ↑ $11.84 $31.96 26% ↑ 8

Statewide $14.90 $40.23 $14.49 $39.14 3% ↑ $11.84 $31.96 26% ↑ 8

HARDWOOD

Mixed Sawlogs $/Ton $/MBF $/Ton $/MBF Chg $/Ton $/MBF Chg Number

Northeast TX $36.02 $343.78 $35.00 $349.38 3% ↑ $25.02 $247.09 44% ↑ 13

Southeast TX $42.73 $384.54 $40.13 $361.21 6% ↑ $39.63 $356.68 8% ↑ 9

Statewide $38.00 $356.31 $36.82 $353.86 3% ↑ $27.27 $265.31 39% ↑ 22

USFS ** ** ** ** ** ** ** ** **

Pulpwood $/Ton $/Cord $/Ton $/Cord Chg $/Ton $/Cord Chg Number

Northeast TX $14.05 $39.33 $17.41 $48.77 -19% ↓ $11.39 $31.89 23% ↑ 8

Southeast TX $13.27 $37.17 $13.24 $37.08 0% ↑ $14.13 $39.57 -6% ↓ 9

Statewide $13.67 $38.27 $15.79 $44.22 -13% ↓ $13.83 $38.71 -1% ↓ 17

USFS ** ** ** ** ** ** ** ** **

S tu mp ag e P r i c e s i n Te x a s

N o v e m b e r / D e c e m b e r 2 0 1 4

1. Stumpage price statistics include gatewood sales. Stumpage prices for gatewood sales are estimated by subtracting cut-and-haul costs, other expens-

es, and profits provided by reporter.

2. Price is calculated from a specific conversion factor reported for each sale if available; otherwise, the average conversion factors listed on page 4 are

used. MBF = Thousand Board Feet. The DOYLE LOG SCALE is used for board foot measurements.

3. Statewide data excludes U.S. Forest Service sales.

4. ** indicates insufficient sales to report price statistics (less than three sales).

5. Prices listed for previous periods may differ from previously published values because additional data have been received.

6. Price change in percentage is calculated based on price in ton.

7. Extreme outliers from reported data are detected and filtered out based on statistical methods.

Page 3: Texas Timber Price Trends

P a g e 3 T e x a s T i m b e r P r i c e T r e n d s N o v e m b e r / D e c e m b e r 2 0 1 4

0

5

10

15

20

25

30

35

40

45

50

55

N/D

'12

J/F

'13

M /A

'13

M /J

'13

J/A

'13

S/O

'13

N/D

'13

J/F

'14

M /A

'14

M /J

'14

J/A

'14

S/O

'14

N/D

'14

P ine

H ardwo o d

$/Ton

S aw l o gs P u l pw o o d

Note: A gap in the chart means less than 3 sales were reported and no price statistics were compiled. For chart data, please go to http://tfsweb.tamu.edu/main/article.aspx?id=145

0

100

200

300

400

500

600

J/A '85 J/A '87 J/A '89 J/A '91 J/A '93 J/A '95 J/A '97 J/A '99 J/A '01 J/A '03 J/A '05 J/A '07 J/A '09 J/A '11 J/A '13

$/MBF-Doyle Historical Statewide Sawlog Prices

Pine Hardwood

0

5

10

15

20

25

30

35

40

45

50

J/A '85 J/A '87 J/A '89 J/A '91 J/A '93 J/A '95 J/A '97 J/A '99 J/A '01 J/A '03 J/A '05 J/A '07 J/A '09 J/A '11 J/A '13

$/cord Historical Statewide Pulpwood Prices

Pine Hardwood

$/Ton

0

2

4

6

8

10

12

14

16

18

20

N/D

'12

J/F

'13

M /A

'13

M /J

'13

J/A

'13

S/O

'13

N/D

'13

J/F

'14

M /A

'14

M /J

'14

J/A

'14

S/O

'14

N/D

'14

P ine

H ardwo o d

Page 4: Texas Timber Price Trends

P a g e 4

Texas Timber Price Trends is a bi-

monthly publication reporting average

prices paid for standing timber in Texas.

This report is intended only as a guide

to general price levels. Individuals inter-

ested in buying and selling timber can use this report to monitor

market trends and get a general idea of what timber is worth.

However, it should not be used to judge the fair market value of a

specific timber sale, which may vary considerably due to many

factors.

HOW ARE AVERAGE PRICES CALCULATED?

Data published in this report are from actual timber sales as

reported by as many as 60 cooperators active in the East Texas

timber market. Reporters include forest product companies,

logging contractors, consulting foresters, family forest landowners,

financial institutions, and federal agencies.

The prices are volume weighted average prices. The price

per ton for each product category is as reported or using a specific

conversion factor provided by the reporters. When a specific

conversion factor for each sale is not available, an average

conversion factor listed here is used instead.

T e x a s T i m b e r P r i c e T r e n d s N o v e m b e r / D e c e m b e r 2 0 1 4

VOLUME CONVERSION FACTORS Sawlogs & Chip-N-Saw Pine— 8 tons=1 MBF-Doyle Pine CNS— 2.7 tons= 1 Cord Hardwood— 9 tons= 1 MBF-Doyle

Pulpwood Pine— 2.7 tons=1 Cord Hardwood— 2.8 tons= 1 Cord

This publication is also available on the Texas A&M Forest

Service website at: http://tfsweb.tamu.edu/main/article.aspx?id=145

WANT TO BE A REPORTER?

If you are active in the East Texas timber market, please

consider becoming a cooperating price reporter. You will receive

report forms bi-monthly with a self-return envelope. In addition, you

will receive a hard copy of the report in exchange for your price

information.