December 28, 2004
Sales activity was slower than needed for a 'healthy' market. Red Oak sales were particularly difficult for many sellers; "as slow as I can remember," noted one contact. Heavy demand for green and KD Hard Maple was the most notable exception.
More green lumber was available and a number of buyers slowed incoming shipments. With the exception of a few species, it was much harder to move green production. Mills held out hope that purchasers were just holding off until after the first of the year. Log supplies were mixed, but most contacts still felt that lumber production was too high for current demand.

Low-Grade lumber markets were beginning to see significant changes. Pallet manufacturers still complained about their inability to pass along soaring raw material costs to their customers, but the slowing demand for flooring Oak was driving mills to cut more Pallet Lumber and Cants. Flooring plants reported slowing sales and restrictions on incoming lumber. One major flooring producer announced a workforce reduction of 240, mostly in the marketing area.
Wood component producers found Hard Maple and Soft Maple components in good demand, but other species were slow. Cabinet demand ranged from good to terrific. Cabinet manufacturers bought more Hard Maple but slowed their Cherry purchasing. Concentration yards said that lumber availability was up with prices correspondingly softer, except for Hard Maple and Soft Maple.
For those of you that got burned selling lumber in the Beaver Homes scandal some years back, feel good that perpetrators Neal and Coleman Martin pled guilty to wire fraud on November 29, 2004. They will be sentenced on March 24, 2005. The Martin's allegedly absconded with $1,253,000 US (back when the U.S. dollar was worth something!). Hopefully, justice will be served.