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Southern Comments

SOFT MAPLE

RED OAK

In general, Red Oak is not a great performer right now, though a longtime sawmill contact in Mississippi mentioned he is receiving plenty of interest for kiln dried 4/4 #1C. Reported prices back up his comments, with the listings and ranges moving upwards. The listings for 4/4 Fas also rise. With no changes to published prices this week, the supply and demand for green Red Oak remain closely balanced.

WHITE OAK

Markets for White Oak are sluggish. On both the green and kiln dried sides, there are Southern sawmills finding firm prices for their White Oak items, but this is not widespread. A retreat in demand drives big drops for the green 5/4 Fas&1f listings, with 6/4 and 8/4 #1C also down. On the kiln dried side, one contact said uppers are moving best for him, with common grades attracting less attention. Still, reported prices keep all the published figures intact except the lower ends of the 4/4 #2A ranges, which rise.

POPLAR

The market for Poplar in the South could perhaps be summed up by the phrase ‘rocks and diamonds.’ Some items, like green #2A and #2B Poplar, are struggling, while others, like kiln dried thick stock, are performing well. Reported prices lead to decreases for green #2A and #2B across all thicknesses, while 6/4 and 8/4 #1C move upwards. For dry stock, there are gains to the lower ends of the ranges for 4/4 Fas as well as the listings for both 6/4 and 8/4 Fas. Meanwhile, both sides of the ranges for 4/4 #2A fall. International appetites are decent for Fas but lagging past levels for the common grades.

Appalachian Comments

CHERRY

Sawmills are currently moving developing green production at steady-to-higher prices, in stark contrast with certain months last year when concentration yards weren’t purchasing much, or offering low prices, because sales to China were hampered by US-China tariff spats. Reported green Fas&1f prices are broadly higher, driving increases to the 4/4 through 8/4 listings in each producing region. The upper grades also have the most energy on the dry side. Increases are warranted to the Appalachian 4/4 and 5/4 Fas listings and ranges, with the listings and high-end ranges for 5/4 #2A also rising. In the North Central subregion, reported prices lift the listings for 5/4 Fas and high-end ranges for 5/4 #1C.

HARD MAPLE

Hard Maple makes several sellers’ lists of worst-moving species again this week. Supply recently exceeded demand but has become more balanced of late, aligning with the market’s reduced interest. Following a period of consistent declines, prices in observed business have not changed much in recent weeks. As such, most published green and kiln dried figures remain intact. However, prices in observed business necessitate reductions to the green 4/4 #1C listings in both color classifications along with increases to the #1&2 White 5/4 Fas&1f listings. In kiln dried, stronger 8/4 Fas prices raise the listings and ranges in both color classifications.

SOFT MAPLE

Demand remains strong for brown Soft Maple but has been waning for Sap&Btr, downshifting from good in early spring to “okay” for some and “not great” for others in early June. Production is highly concentrated in 4/4 because that is the thickness preferred by the cabinet sector, the largest market for this species. Cabinet sales, by volume, were down 10.3% year over year through April, according to the Kitchen Cabinet Manufacturers Association. Weakness is evident in reported green 4/4 Fas&1f prices, prompting reductions to the Sap&Btr and Unselected listings. Conversely, the green 4/4 #2A listings in both color sorts advance for a second straight week. Meanwhile, contacts report slower sales of kiln dried #1C and #2A than Fas. Downward price pressure is evident in reported 4/4 #1C transactions, and the listings are lowered for each color classification. All other kiln dried figures are unchanged.

RED OAK

Several producers list Red Oak among their best-moving species, while a few others list it among their worst-moving. Transactions point out stable pricing for most kiln dried items. Only the 5/4 Fas listings notch gains. Reports about #2A&3A Red Oak supplies vary. Most end users of #2A&3A have ample to abundant inventories. One is not well situated with lumber but is not trying to accumulate any more given uncertain business conditions. The #2A&3A listings are reduced in all thicknesses, as are the listings for 4/4 #1C and #2A Alone.

WHITE OAK

Sales operations aren’t struggling to garner interest in 4/4 and 5/4 White Oak. However, thick-stock, upper-grade inventories have become somewhat problematic over the last few weeks, rising amid softening demand. Information reduces the 6/4 Fas listings and low-end ranges and also necessitates steep declines to the high-end ranges for 8/4 Fas for a second consecutive week. Separately, the top sides of the 5/4 #1C ranges notch gains. Green inventories of most items are not overwhelming, but more 4/4 and 8/4 #1C have entered the marketplace, tipping the supply/demand balance toward excess supply. Those listings are lowered accordingly.

POPLAR

Demand is strongest for upper-grade Poplar, followed by #1C and #2A, as has been the case all year. Domestic sales of #1C&Btr are fair to distributors but range from slow to good to the moulding/millwork and wood component sectors. Concerns about additional green output adding downward pressure on Fas&1f prices did materialize, prompting reductions to the 4/4 through 10/4 Fas&1f listings over the prior two weeks. However, information warrants no additional changes to those listings in this edition and holds all other green figures steady. Most kiln dried Poplar moves as produced at steady prices, though reports prompt increases to the high-end ranges for 6/4 #1C and decreases to the high-end ranges for 6/4 #2A.