Question-and-Answer Session
Operator
(Operator Instructions). And your first question comes from the line of Will Hunter of Neuberger Berman. Please proceed.
Will Hunter - Neuberger Berman
Good morning.
Ray Dillon
Good morning, Will.
Will Hunter - Neuberger Berman
I just have two questions. First one, you guys have historically talked about the relative stability of your sawtimber prices, and prices seem to be down quite a bit this quarter. Could you just talk a little bit about, what's going on there and your outlook for sawtimber prices?
Ray Dillon
What's going on is that, as demand for lumber throughout the Untied States and specifically in the Southern United States has dropped. There's less lumber being sawn from saw logs, so there is a resulting reduction in demand, but there continues to be more available logs on the market, so it's resulted in reduced prices being transacted. And as our logs, we basically price those logs at market levels, and so that's resulted in our logs being priced at a lower level because the market has dropped, and it's due to less demand and still an available log supplier for sawmills in the area.
Will Hunter - Neuberger Berman
Is that supply different this cycle, than it has been in the past?
Ray Dillon
One thing as I mentioned, one thing that is different about this cycle is that in previous cycles, there would have probably been more private landowners taking their available sawtimber off the market, which would have reduced supply, which would have tended to hold those sawtimber prices up more than it has during this cycle.
Will Hunter - Neuberger Berman
And what's different this cycle?
Ray Dillon
Well, the difference is that the private landowners continue to put timber on the market, so the supply of timber continues to be more than available sawmills are sawing, so that's why you see the price pressure.
Will Hunter - Neuberger Berman
Okay. And why is their behavior different this time?
Ray Dillon
I cannot answer that.
Will Hunter - Neuberger Berman
Would you like to take a guess?
Ray Dillon
No.
Will Hunter - Neuberger Berman
Okay. And then the second question is just -- sorry, go ahead?
Ray Dillon
We didn't say anything.
Will Hunter - Neuberger Berman
Okay. The second question is just on your guidance for lot sales? Could you just talk about, why the big incremental jump in the second half of the year?
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