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Could Use an of Explanation of Price Variations of a Species

Started by Glenn1, February 04, 2015, 10:46:20 PM

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Glenn1

I've been looking at published stumpage prices both within a given state and comparing states.  An example would be Pennsylvania which has 4 different regions and the price of cherry varies in each region compared to the next.  Also, it seems that prices in Missouri can be more expensive compared to the same Prime timber in another state. 
If we are looking a Prime prices, is there really a big difference in quality when one region is considerably more expensive than another region?

Glenn
Vacutherm IDry, Nyle 53 Kiln, New Holland Skid Steer, Kaufman Gooseneck Trailer, Whitney 32A Planer

Gary_C

Because of the cost of trucking, pricing is by region and can vary a lot. Also prices vary by quality, supply, demand, number of mills, competition, etc.

So if you can define all those variables in each region, you would have an explanation.
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Southside

More of a supply and demand issue than quality differences. Not a lot of walnut in this area, so not many mills competing for it, as a result there is not a good local commercial / production market for the high grade logs.  That is not to say there is not a demand for the end product, but it would be a niche and the production mills are not interested in chasing that. 
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SwampDonkey

Yep, supply and demand. And those prices are just a snapshot in time, as dynamic as a barrel of monkeys.
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Peter Drouin

Yes , the price of W Pine is going up here. Not sure why, but the big mills are hungry bad. Makes it hard on me to get loads. But if I wait to just before mud season I might be ok. But, I'm not going to wait. :D :D :D
Wood prices are going crazy. And it's like that all over NH.
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coxy

Quote from: Peter Drouin on February 05, 2015, 06:15:51 AM
Yes , the price of W Pine is going up here. Not sure why, but the big mills are hungry bad. Makes it hard on me to get loads. But if I wait to just before mud season I might be ok. But, I'm not going to wait. :D :D :D
Wood prices are going crazy. And it's like that all over NH.
what are they paying for pine there      its  200-250 thous  here

WDH

It is really about supply and demand.  If supply is tight, prices tend to go up.  If demand increases, prices tend to go up to encourage more landowners to sell timber.  Some regions have high supply and low demand.  This is a formula for low prices.  Conversely, if there is a strong established market in an area, and supply is tight, there is more competition for the limited supply, and prices increase.  Prices move in cycles with the economy. 

I would say that it is more supply and demand forces than quality differences, although quality differences certainly do play a part too. 
Woodmizer LT40HDD35, John Deere 2155, Kubota M5-111, Kubota L2501, Nyle L53 Dehumidification Kiln, and a passion for all things with leafs, twigs, and bark.  hamsleyhardwood.com

Glenn1

WDH,  How far to you travel to get quality logs at a fair price.  Do you just pay the current prices locally or do you get in your truck and head for lower prices?

Glenn
Vacutherm IDry, Nyle 53 Kiln, New Holland Skid Steer, Kaufman Gooseneck Trailer, Whitney 32A Planer

WDH

I do not generally buy logs.  Cut most of them off my timberland.  Customsawyer and I team up and buy a few high quality hardwood logs from a local sawmill that he custom saws for.  Kind of a special arrangement.   
Woodmizer LT40HDD35, John Deere 2155, Kubota M5-111, Kubota L2501, Nyle L53 Dehumidification Kiln, and a passion for all things with leafs, twigs, and bark.  hamsleyhardwood.com

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