Atlanta GA Lumber Prices up 35% This Year, 60% Since Last Year

Lumber and OSB prices are up sharply this year, due to few mills still being operational and limited supply of logs. We have probably seen the lows for the year already in SPF lumber, which has taken a huge jump, and is up over 60% from last year. Wet weather in Southern Yellow Pine producing areas has severely limited the harvesting ability of loggers. Logs for OSB and plywood are also limited, and will continue to be until the producing areas dry out. A small increase in new home starts has severely taxed the supply chain at all levels, and the heavy snows may give mills a chance to catch up. Snow in the Atlanta – Athens GA area has not slowed jobsite delivery.
Ainsworth Lumber Co.’s OSB mill at 100 Mile House, B.C., will be down April 12-29 for scheduled maintenance.
Boise Cascade’s plywood mill in Kettle Falls, Wash., will be down the week of February 15 for maintenance.
On a brighter note, M.C. Dixon Lumber Co. may restart its sawmill in Eufaula, Ala., with help from a Community Development Block Grant administered by the Alabama Department of Economic and Community Affairs. The mill shut down in 2008.
Call (770) 995-3900 for current pricing on lumber and panel products.

Georgia Floods Damage & Destroy Thousands of Homes in Athens & Atlanta, Rebuilding Will Require Lumber and Building Materials

Massive flooding covered widespread areas in North Georgia two weeks ago. As a result of the torrential rains, thousands of homes and businesses in Georgia suffered some level of damage or were destroyed. 114 homes in the city of Atlanta alone were destroyed by the floods, with many more damaged or destroyed in suburban and rural areas. More homes were destroyed than have been built this year. Athens had more flooding rains last weekend.
There are fewer new homes for sale than there have been since march of 1983, and there are far fewer existing homes for sale in Atlanta than there have been in several years. As homes are rebuilt and repaired, there will be a greater demand for lumber and building materials. If we use more green home building products for new construction, repair and home improvement, we will make the world we live in a better place.

New Home Sales At Nearly 1 Year High, Lumber Futures Decreasel, Atlanta Flood Update

Higher numbers in the New Home Sales report were expected by lumber traders:
CME lumber ends lower amid underlying cash weakness
November lumber closed down $4.80 at $169.10 per thousand board feet and January off $2.90 at $193.10. Both months posted 2-1/2-week lows.
New home sales climbed 0.7% to 429,000, according to data released last Friday. The available supply of new homes for sale dropped to 262,000, the lowest number in over 26 years. This represents a supply of 7.3 months at the current sales rate.
Atlanta, Athens and North Georgia are expecting more rain this weekend. Fourteen counties are now eligible for FEMA disaster assistance.
Atlanta flood update: More FEMA relief, flash flood watch
Building materials are still in adequate supply, with only spot shortages of some items.

Jeld-Wen's Oshkosh Door Manufacturing Plant Shuttered

Our industry loses another valued producer of building materials.
End of an era: Jeld-Wen shuts down Oshkosh door plant
Jeld-Wen's Oshkosh door manufacturing facility closes after 154 years of manufacturing doors. This plant was one of the largest manufacturers of ornate wooden doors in the nation. Competition from fiberglass and metal doors, along with the economic decline, left no choice but to discontinue operations here. There are about 1,400 companies in the US wood window and door manufacturing industry with combined annual revenue of about $14 billion. The industry is concentrated: the 50 largest companies control about 70 percent of the market. Demand for wood windows and doors is closely tied to residential construction activity, both new construction and remodeling. As these manufacturers cutail and shutdown, there will be smaller product lines and less supply for the Atlanta-Athens, Georgia area.
There are literally hundreds of lumber, plywood and OSB mills that have closed in the last 3 years. Some may re-open, but many have been dismantled and even transformed into different types of businesses, never to manufacture building products again.

Lumber Prices Increase While Rain in Atlanta and Athens, Georgia Push Other Building Materials Prices Lower

An increased rate of housing starts in August, combined with low field inventories drove lumber prices up. to Jobsite delivery was hampered in Georgia, especially in the Athens - Atlanta area.
CME lumber ends higher on firmer cash
'A midweek upswing in sales of Western S-P-F sparked the market. Wholesalers took cautious long positions and distributors more confidently replenished,' Random Lengths said.
Lumber and panel mills continue to shut down or curtail production, but that seem to give little support to other building materials. OSB and plywood mills still have some order files, but are under pressure from increased selling at the secondary levels. Upward pressure on panel prices could result from any development of tropical activity in the Atlantic.
Tropical Storm "Grace" forming?
After a week-long quiet spell, the tropics are showing signs of life as a large area of low pressure takes shape in the central Atlantic.

Signs of economic recovery growing locally

The good news is the bad news is getting better.

June retail sales in the Pensacola Bay Area turned in the fourth-best performance among Florida's 20 major metropolitan areas, slightly trailing only Fort Walton Beach, Panama City and Melbourne.
Although still down 2.3 percent over same month in 2008, June's $453 million in taxable retail sales was a $60 million improvement over April's figures, and $33 million better than in May.
University of West Florida economist Rick Harper said the strong showing by Pensacola and Panhandle cities is due in large part to its huge military payroll.
"The fact that Pensacola, Fort Walton and Panama City had among the least bad retail sales and unemployment numbers across the state, is consistent with the fact this region has one of the heaviest shares of government and military employees," Harper said.

*** When parts of Florida pick up, it is a good sign for neighboring states. It shouldn't be long before housing picks up and the demand for lumber, plywood, OSB and other building materials increase. This is good news for every building material supply and lumber yard left standing. Reid Adams www.coferadams.com
www.coferadams.net

Homebuilders Are Back At It — Should We Be Worried?

By Barbara Kiviat Tuesday, Aug. 11, 2009
In June, the number of new houses being built unexpectedly jumped from the month before. The Census Department recently reported that June also showed an increase — a small increase, but one nonetheless — in the amount of money going toward residential construction. Housing permits, which also speak to builder confidence, are creeping up too. As an Aug. 10 report from Oppenheimer Asset Management put it, "this part of the housing market appears to be finding its footing."

MBA Purchase Applications

MBA's purchase index popped 6.7 percent higher in the July 3 week to a 285.6 level that hints at improved demand for housing.

Home prices fall at record pace in first quarter

National home prices are at levels not seen since the end of 2002, but a closer look at data released Tuesday shows the worst may be over for some cities.

U.S. Pending Home Resales Increase for a Second Month

May 4 (Bloomberg) -- The number of Americans signing contracts to buy previously owned homes jumped in March for the first back-to-back gain in almost a year, reinforcing signs that the housing slump in its fourth year may be near a bottom.

U.S. Economy: Existing Home Sales Hover Near Four-Month Average; Prices Increase

April 23 (Bloomberg) -- Sales of existing U.S. homes in March stayed near a four-month average, and prices rose from February, a sign the housing recession has stopped getting worse.

Home Prices Drop 6.5% in February as Mortgage Rates Fuel Demand

April 22 (Bloomberg) -- U.S. home prices fell 6.5 percent in February from a year earlier, the second-smallest drop in six months...

We supply construction materials and lumber to the film industry

Cofer/Adams Building Center is the premier supplier of construction materials for the film industry in Georgia. Contact us for all of your construction materials On Set Supplies in the Atlanta & Athens area! Ask for our On Set Supplies specialist- Gary Majestic.
(770) 995-3900. www.coferadams.com

CME Lumber Review: Ends Firm After Very Light Session

The May contract settled $1.70 higher at $185.70, while July ended $3.70, or 1.96%, higher at $192.70. The September contract was up $1 at $201.00.

DJ CME Lumber Review: Ends Narrowly Mixed After Spread-Trading

Commodity fund-style traders were rolling long positions out of the May contract and into the July, and locals and commission houses were there to take the other side of such spreads, brokers said.

DJ CME Lumber Review: May Ends Limit-Up After Economic Reports

The May contract settled $10.00 per 1,000 board feet, or 5.98%, higher at $177.30, while July ended $8.00, or 4.53%, higher at $184.50. The September contract was up $8.50, or 4.51%, at $196.90.

DJ CME Lumber Review: Prices End Mostly Higher After Quiet Day

The May contract settled up $1.10 per 1,000 board feet at $160.90, while July ended $0.80 higher at $171.40. The September contract was off $0.30 at $182.10.

CME Lumber Review: March Expires $4 Lower In Weak Cash

The March contract settled down $4, or 2.78%, at $140, while May ended 90 cents lower at $159.10. The July contract was off $0.60 at $169.30.

CME lumber uneven ahead of March expiration

Demand for lumber continued to languish, and most prices finished flat to down,' Random Lengths said. 'Despite extensive curtailments across the U.S. and Canada, many traders observed that production continued to outweigh demand.

CME lumber turn mostly lower on slow cash trade

At 10:15 a.m. CDT (1515 GMT) March lumber 2LBH9 was off 60 cents at $146.00 per tbf with May 2LBK9 off 90 cents at $161.60 per tbf.