Pine Pulpwood Expected to Rise!

In 2011, states such as Georgia, Louisiana and Mississippi show sawtimber prices exceeding $30/ton, and Florida and Louisiana surpassing $11/ton for pine pulpwood.  Prices change annually across and between states in the 10-year forecast as local mills adjust to end-market demands.  The benefit to forecast users of this bottom-up approach was evident in 2010.  “In 2010, Forisk’s sawtimber forecast was within 4% of actual prices, and within 1% for key end-use markets such as paper and paperboard,” said Dr. Tim Sydor, Forisk’s Forest Economist.  “The key is understanding and updating the local, statespecific relationship – the elasticity – between wood demand and prices.”

The ForiskFORECAST: Pine Sawtimber and Pine Pulpwood predicts annual pine sawtimber and pulpwood stumpage prices across the US South and by state through 2020, and forecasts the production of lumber and paper and paperboard, as well as the demand for wood from emerging bioenergy markets.  For more information, visit www.foriskstore.com and click “Stumpage Price Forecasts.”

Written by Dr. Brooks Mendell