Timber Prices: Supply, Demand and Extenuating Circumstances

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Understanding how timber prices are formed is crucial for forest stakeholders including landowners, investors, forest product industries, and timberland appraisers. Changes in timber prices can be demonstrated from an interaction of supply and demand curves of timber products. The timber prices varies, as several supply and demand factors cause the supply and demand curves to shift which results in new equilibrium price and quantity. For more in-depth information on what demand and supply factors are driving timber prices, please refer to the full article published in the March/April issue of the Forest Landowner Magazine, the bi-monthly publication of the Forest Landowners Association.Price x Quantity supply and demand graph