Posted by chevytaHOE5674 on November 06, 2010 at 06:51:59 from (74.221.57.6):
In Reply to: OT Timber Sales posted by deerly parted on November 04, 2010 at 19:12:33:
When demand spikes then timber prices rise dramatically then it causes a large flood in the market because everybody is selling and then the whole thing goes bust as the demand has slowed down. This is what happened a few years ago, and back in the 80's.
If you are able to sustain prices someplace in the middle then supply can somewhat equal demand and the prices will persist increasing slightly with inflation and such.
Our mill is sawing 25000-30000 log feet a day 5-6 days a week and moving all grades of lumber without much issue. Sure the landowners aren't getting rich off their timber, but neither is the mill getting rich off the lumber. Loggers are making it as cost of production has come down a lot in the last couple years. So the whole system is working.
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