SYP

The first formal wave of frigid temperatures swept across most of the South over the weekend. Many buyers now seem to be in the winter season mindset of keeping purchases at a minimum as the building season is slowing down. This lack of demand resulted in most products seeing a drop in price this week.

All widths except 2x6s saw decreases this week.

2x4s, 8s, and 10s all nearly dropped $10/mbf.

2x12s dropped around $5/mbf.

2x6s on the other hand took an increase of around $5/mbf.

As SYP hit its lowest point of the year at the end of August, it has only come up an average total of $30/mbf in the past two months. There may be some money to be saved in waiting a few weeks to buy truckloads; nevertheless, most of Yellow Pine is priced at what many are considering a great value.

We do expect SYP to be decreasing through at least November if not on into mid-December around $5 to $10/mbf a week.

SPF

Last week, our speculation that 2x4s (in SPF) seemed to be over-priced proved to be correct as 2x4s fell $15 to $20/mbf this week. We could possibly see another double digit decrease next week but it will depend on how quickly buyers come off of the sidelines to buy SPF as prices are coming down.

2x6s also came down but only around $5/mbf.

Stud prices are still working their way down but do seem to be flattening out as prices only came down $5/mbf this week.

SPF has now had an average decrease of three weeks in a row so it is safe to assume it will at least have two to three more weeks of decreases.

OSB

Very little movement yet again in OSB. However, many contract negotiations between mills and large brokers will be settled within the coming weeks which could bring a tightened supply, at least in theory, in OSB. We expect OSB to begin rising any given week, but could even be a month or two before any significant increases are seen. Only time will tell, but many are patiently waiting for OSB to begin its long-anticipated rise in prices.