What made it difficult for buyers in the lumber market yesterday, was staying ahead of the mills and what they had for sale. Many items they had sold quickly, making buying decisions spontaneous. Traders often could not get reaction fast enough from their clients and would lose coverage. It made it difficult sledding, depending upon the mills to garner back to back business. Reliance on the reloads was the key to maintaining self-confidence and getting the many orders transacted yesterday. Logistical issues continued to prompt delays while prices climbed higher.
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Do reloads create self confidence in that you know you have a place to put the wood although you might not have a seller ready right away?
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putting wood in reloads has a cost that needs to be justified to putting it there. it is better for transactional traders to sell back to back between the mill and client than to speculate and assigning it to a reload.
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