LUMBER The market firmed up to mill asking levels a week or so ago, which…
Here is what is happening this week in commodities.
Lumber……remains active and order files continue to extend with most mills now well into February. Prices also continue escalate Random Print was up 40/m on 2×4 Mid-Week, don’t be surprised to see it up another 35/m tonight for 75/m total for the week.
Why we are here? Labor shortages are having an effect on production, strong sales in the field are out pacing production and of course we have a truck shortage to deal with.
The truck issue is a problem on two fronts some mills reporting that log supply has been interrupted by a shortage of log trucks and once the logs have been processed getting them shipped from the mill is a nightmare.
Many items are hard to find 2×6 104 5/8 are rare and decent tallies in 2×8 and 2×10 are tough.
Where does this market go from here? Watch for this market continue to be active until transportation and staffing issue’s at mills begin to ease.
We have heard rumors of mill curtailments due to mills not being able to get wood out to the market place.
So far just rumors, hopefully curtailments do not come into the picture as that would have a big impact on pricing and orders already running late.
Plywood……Most mills are OTM for the third week now. Order files are being held around mid-Feb but shipping problems are easily pushing deliveries back 4-6 weeks.
Pricing will likely hold on this week’s print as mills have not reported any sales. The truth of the matter is the all parts of Canada and the US are light on wood so when mills come back on
they will be in the driver’s seat on pricing. Don’t be surprised to see pricing up as much as 10% when mills come back to the market.
OSB…..Just like plywood most OSB mills are OTM this week. If any wood hits the open market it is selling a huge premiums. US markets are very short on stock due to mills in the south having
staffing problems so they are willing to pay almost anything to cover their needs.
Watch for OSB prices to continue to climb until production in the south comes back up.
Please note that we are working very hard to keep stock in our yard but some of these problems we are having we have no control over.
Trucks that are running 4-6 weeks late are common and that has placed tremendous pressure on the system.
Have great week and happy selling.