LUMBER The market firmed up to mill asking levels a week or so ago, which…
Here is what is happening in commodities this week:
Lumber……Order files are late Feb or early March. This week we have seen a multi- day correction in futures with has caused buyers to pause and evaluate their positions.
Pricing on mill lists today is unchanged, mills will be content to ride their order files as shipping issues still plague the industry.
Interest rates being held (for the short term) and hot housing markets on both sides of the line will also help mill sales managers to hold prices.
Secondaries may get nervous and want to move bought ahead positions in case of a slide but it does not appear that those positions are too deep. Keep in mind that even wood that is called ready today may take 2-3 weeks to arrive.
Buyers are in a wait and see mode so it will be interesting to see who blinks first!
Plywood……Mills are OTM again this week and supply is very tight. Mills are still having issues getting product out, and many yards inventories are at critical points.
Pricing was flat on print at mid -week mainly because there are no sales to report. Once mills come back to the market watch for prices to climb as the market scrambles for coverage.
OSB……Not much change again this week. Mills OTM and prices continue to climb. Print was up 50/m on Mid- week and look for another 50/m on tomorrows report.
Shipping has improved a little at the OSB mills but the lack of production in the US south still has the supply/ demand out of balance.
Have a great week and happy selling!