Although activity in the lumber market ended on a quieter note Friday, the week overall saw steady demand and orders. Prices were lower for the week, compelling buyers to be more cautious, and seeing if the trend would continue. Replenishment was ongoing but at lesser volumes. The conundrum was that there was not a lot of excess lumber showing up at the mills, and inquiry levels were strong in the field. There were also indications of larger jobs getting ready to start, with seemingly very little lumber committed for them. Mill shipments are two weeks, bumping into Thanksgiving.
Are mills taking counters?
@william_giguere @Andrew_Gibson very interesting set of facts! Market behavior is a bit contradictory. See lumber future prices overall that i posted in response to @Michael_Haas 's chart – things are slowing down. So if there are many large jobs starting up this time of year, this should help either bring up the prices or at least stabilize them. Mystery why mills are not stocking up for the winter …
@Madison_s_Lumber_Rep had some good comments in her last report about how at year end mills are incentivized to clear out their lumber inventories and stack up their log inventories for tax reasons.
@william_giguere have you seen this behavior?
not sure but will ask eastern mills
probably not to start the week, unless something in their wheelhouse to sell