NEBRASKA'S FOREST PRODUCTS BULLETIN

Northern Region

Grade lumber markets have taken a noticeable downturn the past several weeks. While contacts expected adjustments to prices from record highs for some species, the current business environment has been somewhat unexpected. For one, demand for grade lumber has softened. It is taking houses much longer to be completed than normal. The supply chain slowed the flow of key products necessary to finish new home construction, such as windows and doors. Skyrocketed prices for materials also had a major impact on construction progress. The controlled housing completion rate is impacting markets for hardwood finished goods, creating a lull in demand for cabinets, furniture, molding/millwork, flooring, and other interior fittings. Consequently, demand for grade lumber is off, as well. At the same time, Eastern US hardwood production has increased significantly, up 15% this year over 2021. More lumber and less demand have triggered falling prices. The good news is that there are pent up needs for hardwood products. As homes that are started are eventually finished, more hardwood products will be required.  Meanwhile, it is expected the railroad industry will remain strong for the foreseeable future. Tie inventories are low relative to expected insertions. Too, the wooden pallet and container industry is busy meeting orders. These low grade markets are critical to the success of sawmill operators. But, area mills do need to be able to saw and sell total production; revenue from higher valued grade lumber sales is necessary. To this point, that has not been a problem for Northern operations, while mills in other regions are struggling with finding outlets for all developing supplies. 
 

Southern Region

While July production data is not yet available, Eastern US hardwood lumber output has increased the past three months. At the same time, most secondary manufacturers and concentration yards have increased on hand inventories. Many are also experiencing a slump in product sales, with the downturn more pronounced for some than others. The combination of lower immediate demand and increased supplies has impacted pricing for green and kiln dried lumber. More concerning for mills selling only green lumber is salability issues. In cases, area mills are struggling to ship total grade lumber production. On the other hand, interest in railroad ties and pallet cants remains good. 
 

Appalachian Region

The HMR Demand Index (HDI) is a feature published in HMR Executive that illustrates the strength of business or demand from 10 major domestic markets for hardwood lumber. Components of the index are color coded with various shades of blue when demand is low, they transition to gray when demand is fair, and then to light red and deep red when demand moves from good to strong. During most of 2021 and the first five months of 2022, most index components were consistently red - indicating good to strong demand across a broad range of markets. However, most readings faded to the lighter color red or gray in the last two months, as yards and end users reached or surpassed inventory objectives and slowed purchases. Only the pallet and railroad tie components registered red in the HDI for July. 

(Source: Condensed from Hardwood Market Report, August 5, 2022. For more information or to subscribe to Hardwood Market Report, call (901) 767-9216, email: hmr@hmr.com, website: www.hmr.com) 

Lincoln, Neb. — City of Lincoln Mayor Leirion Gaylor Baird and Bloomberg Philanthropies announced that Lincoln will receive up to $400,000 in funding and technical support for a project to turn wood waste into biochar, a charcoal-like substance that can be used as a beneficial soil amendment. Lincoln is one of seven cities in the U.S. and Europe chosen to develop a biochar project that was first successfully demonstrated in Stockholm, Sweden, the winner of the 2014 Bloomberg Philanthropies’ Mayor's Challenge. 

LINK TO FULL STORY: https://ianrnews.unl.edu/lincoln-awarded-400000-biochar-initiative 

Wyoming Public Radio, By Hugh Cook 
 

Neiman Enterprises, which owns sawmill facilities in four states, has eliminated a shift at their Hulett mill and has reduced the number of employee hours at their Spearfish, South Dakota facility as a result of a reduction in timber available for commercial operations. This comes just a year after they were forced to close their Hill City, South Dakota facility for the same reasons. Around 100 jobs were affected and only a few were able to transition to their Spearfish operation. 
 

LINK TO FULL STORY: https://www.wyomingpublicmedia.org/natural-resources-energy/2022-07-27/a-black-hills-area-forest-products-company-is-having-to-cut-back-due-to-a-lack-of-timber 

The Trading Post is provided as a free marketing service for forestry industry. Only forestry-related advertisements will be accepted. Please submit written ads to the Timber Talk editor at least 15 days before scheduled Timber Talk publication dates. Ads may be edited to meet space constraints.
 

For Sale:

Post Peeler. Morbark PS8 Post Peeler. Comes with 2 engines, 1 diesel and 1 electric. 8ft in-feed table with short return system. 33 ft of dead rolls with markers for trimming with hydraulic bar saw. Markers for 6½, 7, 8 and 10ft posts. Several bunks and banding equipment included. 24ft triple axle trailer for hauling also included. In excellent condition. Video available. Call John Hahn. 308-430-0630(c); 308-638-7531(h) Hay Springs, Nebraska.

Mulch. City of Nebraska City has approx. 60 semi loads of single grind mulch $200/ semi load or $50/dump truck load. Shipping not included. Arrangements will be made to load. Contact: Marty Stovall 402-873-5515 or email mstovall@nebraskacity.com

Sawmill. Mighty Mite bandsaw. 20 HP electric motor, tandem axles w/ brakes on one axle, 36” x 24’ log capacity, (have cut 46” beams) hydraulic operation includes winch, knees, taper, near arm, dogging arms, far arm, dogging spike, log loading arms, and electric clutch and blade lift. Includes automatic blade sharpener, setting machine, 12 used blades and 4 new blades. Excellent condition. Never been used commercially. $17,500. Contact: Gary Fisher, Crawford, NE. Phone: 308-665-1580; email: fisher@bbcwb.net.

Walnut Lumber. All dimensions. $3.00 per board foot. Falls City, NE. Contact: Bruce Walker at 402-245-2031.
 

Services and Miscellaneous:

Portable Sawmilling Service. Offering portable sawmilling service, turning your logs into valuable lumber. Contact : Doug Patton, D&S Sawmill Services, Palmyra, NE. Phone : (402)-269-4866 or Email : dssawmillservices@gmail.com

Woodshop Services. Millwork made from your lumber on my planer/molder. Chris Marlowe, Butte, NE 402-775-5000. Marlowepasture@nntc.net.

Sawmill Service and Supplies. Saw hammering and welding. Precision knife and saw grinding. Contact: Tim Schram, Schram Saw and Machine, PO Box 718, 204 E. 3rd St., Ponca, NE 68770, 402-755-4294.

Used Portable Sawmills. North America’s largest source of used portable sawmills and equipment. Contact: Sawmill Exchange, 800-459-2148, website: www.sawmillexchange.com.
 

Wanted:

Wood Residue. Slab wood, cutoffs, sawdust, mulch, bales, etc. Lincoln, NE. Call Scott Hofeling at 402-432-0806 or email scott@hofelingenterprises.com.

Logs and Slabwood. Cottonwood, cedar and pine. 4-26” diameter and 90-100” lengths. Below saw grade logs acceptable. Contact: American Wood Fibers, Clarks, NE at 800-662- 5459; or email: Pat Krish at pkrish@AWF.com

Cottonwood Logs. Veneer-quality cottonwood logs, 16-36” diameter, 7’ and longer. Pick up service available. Contact: Barcel Mill & Lumber, Bellwood, NE 68624. Ask for Barton or Megan. Phone: 800-201-4780; email: bj@barcelmill.com.

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