TIMBER MARKET WATCH

If you had wood to sell in 2014, there is no denying that it turned out to be a very good year to sell it. The prices were strong, and the mills couldn’t seem to get enough to meet their needs. But as many have pointed out, we can expect to see a drop in prices throughout 2015, but they probably still will remain above what was being paid in 2012 and 2013.

The species that will continue to remain strong are sugar maple, ash, and red oak. Sugar maple, which is primarily sold domestically, did very well and was $200 mbf or more over what has been seen in the past. Traditionally, it’s a finicky species in respect to pricing because it’s not a product that’s in heavy demand in foreign countries. This is especially true for veneer, and going forward we may see a higher than average drop in veneer prices. This is relative to saw log prices though, as veneer prices are historically some of the most stable, due to the rarer nature of veneer logs. Red oak and ash stayed strong through-out the end of 2014 and into 2015, because the majority of red oak and ash lumber (some estimates peg it as high as 75%) end up overseas in countries like China and Vietnam, which is experiencing faster growth and development than we are here. In the Vermont area the price of ash dropped around $100, as did oak, but it is expected to remain stable throughout the new year.

In Maine as well as in New Hampshire, hardwood pricing has stayed stable save for a few minor adjustments, and pro-jections are that 2015 will be similar to 2014. Low grade hardwood saw an increase that may last indefinitely and softwood prices have stayed higher than normal, as difficult weather conditions have prevented mills from procuring the inventory need-ed to keep their yards stocked through spring. Oil prices have dampened the demand for firewood, and as oil continues to stay lower, the cordwood end of things might suffer a bit, but certainly not in the long term.

The previous year ended up being one for the books for timber buyers, timber harvesters, and landowners. Retrospec-tively. The bottom line is that there is a good year on the horizon for wood prices, and although we might not see the prices that we saw in 2014, it is safe to say that mills will be paying above average for both hardwoods and softwood sawlogs, and the pulp market will remain strong. Ultimately, we will continue hoping for someone to invent a working crystal ball, but in the meantime we cannot predict the price of wood with 100% accuracy. The market will remain strong but timber prices are not the only thing a landowner needs to consider before harvesting. Management goals play an important part in harvesting time-lines, as well as the "interest" of having uncut wood sitting on the stump.