Activity started out quiet and somewhat lethargic in the lumber market yesterday but demand picked up momentum throughout the day, ending up on an active note. The mills had selective items they wanted to sell, which drew little interest. Insinuations of compromise from them inspired some to react but the need for many of these items was lite. The high demand items continued to be challenging to source from the mills. Options from distributor’s reloads sold at a premium to the open market, further exasperating buyers simply looking for reasonably priced material.
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@william_giguere what are examples of selective items the mills are interested in selling? And what are examples of the high demand items in the Eastern Spruce market?
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Do insinuations for compromise often lead to compromise?.. Are we beginning to see topping behavior?
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examples of selective items would be one mill having 2x4 random to sell and another having 2x6 and not necessarily both items. each mill having a select basket of items to and want to sell
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examples of high demand items are MSR items and specific lengths such as in 10’ in 2x4 & 2x6 are examples…there are some others as well that the mills generally do not produce much of
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yes- I was being polite to the mills. they are interested in moving items they have ready and will have, entertaining offers, albeit little, to move them at the moment. if they do not get sales on them then they will become more aggressive as time moves on
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@william_giguere how long does a product have to sit at the mill before they start to be aggressive about selling it? does seasonality matter, which would include weather conditions?
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there is no set time. bosses will decide for reasons related to the market will determine how long. most eastern mills want to produce and ship regardless. the winter allows more storage time for them as the cold will diminish discoloration and eliminate any mold growth that may occur during the warmer months.
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