Wet weather conditions continued to have an effect on log supply as quite a few mills across the region reported lower log supply due to restrictions on removing stumpage from the woods.  Expectations are that this will subside as the summer months return and conditions improve.  Reports are that overall sales have remained good, with the exception of lower-quality products (crossties and construction matting), and consistent export markets have kept log concentration yards busy.  In a general economic sense, though the economic recovery has not been quite as robust as some economists had expected, the number of first-time homeowners has increased, accounting for approximately 85% of the housing market’s expansion over the last two years as per the National Association of Realtors (there was reportedly a 15% increase between 2015 and 2016).  Also, word is that the RV industry – a large consumer of hardwood moldings and other wood components, is “predicting (that) 2017 sales will be the strongest since data collection began in 1978.” (Weekly Hardwood Review)

Weather conditions have affected production hours and supply a bit over the Appalachian region this past week, having a slight effect on demand.  Ash continues along at a steady pace, while cherry has seen yet another tick up in price as the Chinese demand continues.  Both maples, red (soft) and sugar (hard) have also seen upticks in lumber prices this week; soft maple prices are said to have been driven up in part due to the increase in demand for painted cabinet sales, and upper grade hard maple is said to be moving again, but expectations are that there will be a leveling off of this species soon as the hot summer months come upon us. (WHR)

General lumber market comments/trends in the Appalachian Hardwoods region:

Black cherry: + 14.3% (since Jan 6th 2017)

Hard (sugar) maple: 0.0% (since Jan 6th 2017)

Red oak; 0.0% (since Jan 6th 2017)

White ash; +11.3% (since Jan 6th 2017)

Soft maple; 0.0% (since Jan 6th 2017)

 

Perspective and % Changes are measured using data from January 6, 2017 to June 16, 2017

 

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