Very little movement has occurred in the log market over the last several months. In general, there has been a slight weakening of prices as sawmills built large inventories due to plentiful log deliveries associated with the excellent fall/winter logging weather we experienced this year. With supply and demand economic fundamentals at work, many mills lowered prices in an attempt to stem the log flow. This happened in spite of a slowly improving lumber market.
When our newsletter was going to print, spring break-up road conditions were commencing. As most of you know, sawmills usually wait until toward the end of break-up to set log prices. Where prices go will be influenced by the duration of spring break-up and how the lumber market responds to building demands. However, at this time it is anticipated that prices will trend upward, but very modestly. — Mike Wolcott