As tentatively anticipated last month, September was a price trough and log prices rose in October.
Export prices surprised on the upside, increasing by up to $15 for K grade at some ports.
All export grades rose to a lesser extent and domestic pruned increased in some regions up to $5. Other domestic log prices were up marginally or flat.
The chart below shows the 10-year trend of steadily increasing China log import volumes from major supply sources. Within that upward trend is considerable month-on-month volatility (which corresponds to the highly volatile pricing we have seen during the same period).
Reserve Bank hints interest rate cut may fuel NZ housing costs, not investment
Reserve Bank Governor Graeme Wheeler says further interest rate cuts are still likely, but he will consider how much cheaper borrowing costs will boost investment.
With inflation running at close to zero, Wheeler has indicated he will reduce the Official Cash Rate (OCR) before the end of the year.
However, economists have questioned how much of an impact lower interest rates will boost the economy.