Timber Market
Chapter
7


This chapter will discuss the current log market in Oregon and Washington. Current log market prices are taken from log market reports from March 16, 1998.

Table 7.1 Oregon Log Market Prices

Log Type

Douglas Fir Price ($)

Hem-W. Fir Prices ($)

Red Cedar ($)

Const. #2 Saw

650-690

1,100-1,250

#2 Sawmill

565-625

450-510

#3 Sawmill

500-580

400-450

Chip/Saw

400-545

385-410

 

Table 7.2 Washington Log Market Prices

Log Type

Douglas Fir

Red Cedar ($)

Hemlock

#2 Sawmill

490-620

 

425-500

8" + K only

500-650

 

390-500

Tonwood

55-65

 

38-50

Pulp

 

1,000-1,280

 

Table 7.1 gives current market values for different domestic log types in northwest Oregon. Table 7.2 gives current market values for domestic logs in Washington. The values are given for different log sizes. Since the Washougal Harvest Plan is projected over the next 25 years, then the market value interest is in the trend of prices over time. If harvest is every five years then log prices for that consecutive year should be applied.

The trees in the Washougal Planning area tend to be a mixture of #2 sawmill, #3 sawmill and chip/saw logs. These trees represent a range of lower grade timber. As the trees grow the grade will become better. Better grade will result in more money paid out by the sawmill. Harvesting later to let the trees grow will produce better grade logs with better log prices.

To determine an average market price per MBF the following assumptions were made. The first assumption is that the timber is mostly Douglas-fir .The second assumption is that a 32 to 40 feet butt log can be cut from approximately 67 percent of the trees. Furthermore we will assume these logs will account for 67 percent of the volume. All of these logs will be of # 2 sawmill grade. Half of these logs shall sell at $575/MBF and better half at $600/MBF.

The third assumption is that 10 percent of the second cuts will be 32 feet or longer and account for approximately 3 percent of the volume. These logs will sell for $550/MBF.

The balance of the logs will make up 30 percent of the volume and half will make a # 3 sawmill log. The rest will make Chip/saw. These are rough calculations but they may be possible if proper felling, bucking, and limbing procedures are followed. Table 7.3 depicts the estimated distribution of log grades with prices and provides a rough estimate of the average log price.

Table 7.3 Summary of Expected Log Prices

Logs

Grade

Volume

Price per MBF

Weighted Price

Butt logs

# 2 sawmill

33.5%

$600

201.00

Butt logs

# 2 sawmill

33.5%

$575

192.50

2nd cuts

# 2 sawmill

3.0%

$550

16.50

Butt and 2nd cuts

# 3 sawmill

15.0%

$500

75.00

2nd cuts

Chip/saw

15.0%

$450

60.00

Totals

 

100%

 

$545.13

From this table the estimated timber price is $545.13 per MBF.

 

Chapter 6 Chapter 8 Report Outline