Comments on stumpage price responses: First quarter 2004

Ø Three sales, all with some veneer material, still in marketing mode. Softwoods may be down some (especially HK) but valuable hardwoods still way up there. Of course, many mills reluctant to take much pulp but the ones that are willing appear to not mind taking all that’s included. So, hit or miss on that!

Ø Intense physical labor will produce firewood and return customers year after year.

Ø Stumpage price reflected on long wood; 12 foot allowing 20 %; 10 foot of white pine; seems like you have to deal with many mills to sell logs at a competitive price on w.p. For instance, Hancock Lumber has 1 buyer wants 10 million feet. Of that order, only 1 million can be 10’. If Hancock Lumber wants order this is what they have to ship, if not, customer will go elsewhere.

Ø Veneer prices and market on red oak seem a little soft. Sawlogs strong on everything.

Ø The market for bid lots is hot. We are seeing record process for low value and quality sales.