How Do Timber Prices Fluctuate?
Publish Date: July 15, 2023
If you’re looking to sell your timber stand, you likely want to know how timber prices fluctuate. This knowledge can help you get the most out of your timber. Unfortunately, the answer isn’t black and white, and you could be waiting years hoping prices will go up to eventually realize they won’t reach the price you had in mind.
How Timber Prices Fluctuate
- Supply and Demand – It’s simple economics. The more people who want a specific type of wood, the more they are willing to pay, especially if the supply is scarce. However, if few people have a use for a certain tree species, it can be hard to get rid of, particularly in times of high inflation.
- Inflation – Trees don’t magically turn into structures — cutting, transporting, and processing timber involves a lot of overhead costs. As fuel and labor costs increase, so do the prices of in-demand tree species. Prices must make sense along the entire supply chain so everyone can profit enough to run a successful business
- Supply Chain Issues – One could argue that supply chain issues could fall under the supply and demand bullet point. Still, we thought it would be worth mentioning alone, as there are some unique points to consider.
- Labor shortage (foresters, drivers, etc.)
- International restrictions (increased tariffs, pandemic, etc.)
- Storage issues (full woodyards)
- Extreme weather (tornadoes, ice storms, and thunderstorms can down trees and powerlines, making transport difficult)
Looking to Sell Your Timber Stand in MS, AR, or LA?
As a timber and land buying and management company, we have the expertise and resources to advise you on the best option for selling your timber and then fall and transport them to the next people in the supply chain.