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Here is what is happening in commodities this week.

Before we dig into product lines, Shipping disruptions have played a  major role in all 3 product lines and unfortunately there is no good timeline as to when we may see some of these issue’s resolved.

Until the logistics problem settles down we are in for a bumpy ride on pricing and delivery dates on all products.

Lumber…….Mill order files are now into early to Mid-January on many items and pricing is up roughly 60/m. The West Fraser announcement regarding production reductions at their BC mills due to shipping constraints and added US duties

were the catalyst for this weeks run. Where do we go from here? Good question, that will depend on how long it takes to figure out road and rail problems. Will there be a discount for wood staying in Canada?

With mills now having files into the New year, there will be no discounting for wood staying in Canada until the new year at some point, if at all. Weather across western Canada has been good and builders have been able to keep their foot on the gas. As we get closer to Christmas

demand will slow down and perhaps mills will be able to catch up on shipping and take some pressure off the market. Mills will take down time over Christmas as well, so we will see how this all plays out.

Plywood……Mill Order files are now early Feb and prices are up 4% from last week. Many mills have now gone OTM and will assess files and come back on the market next week. Where will they be on pricing ? don’t be surprised to see pricing go up another 2%  to start next week.

It will be interesting to see how far mills and buyers are willing to take their order files out, given the fact the Plywood market melt down is still fresh in people’s minds.

OSB…..Order files are late December to early Jan. Mills are charging a premium for cash loads. Still hearing a few rumors about production cut backs as mills are having a tough time shipping loads to many zones, if that continues for much longer

mills will run out of storage for their inventories, and they may be forced to shut down for a short period of time. What will that do to pricing? As mentioned above hang on, it could be a bumpy ride.

Hopefully the rains in BC will stop soon, transportation issues get solved, and we can get back to regular trading.

Have a great week.