The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-03-15
CURRENT MARKET CONDITIONS

An encouraging feature OF the lumber market Il
found in the fact that prices now appear possess
some element of stability. says The Southern Lum-
herman. 1t is true that values have not wholly
ceased their upward trend but changes in this dur
ing the past week were not so pronounced and the
belief that values have reached their crest is gain
ing ground. The only natural factor calculated to
process that in view of normal weather conditions
must OF necessity be slow
Efforts OF southern pine manufacturers to build
up production in conformity with the requirements
of the trade bearing fruit and the output the
mills are increasing steadily. Orders while slightly
below the level OF production are showing an ex-
pandng tendency that promises to maintain the ac-
tive state of the markee With the exception Of g
few adjustments OF minor nature prices during
the week remained unchanged and hope is express
ed in quarters that the market is now entering
prices would be a marked stmulant to business
and several OF the leading producers have beer
working assidiously TO check the tendency toward
rapid fluctuations. The greatest difficulty now en-
countered by manufacturers is the shortage
which Is not only hampering shipments, but in some
sections is interfering with production During tn,
week a number of mills without extensive storage
facilities were forced to close down until cars fol
shipping lumber already manufactured could be Sc
the immediate requirements of builders in their To-
calities but firmly adherng to their former pol
icy Of Withholding all but necessary purchases
The export movement is at standstil and in view
OF the chaotic exchange situation. the date for full
resumption OF this business appears to be as re-
mote as ever. As the time for the return of the
railroads to private management approaches lumbe,
manufacturers are indulging in considerable spec.
uation as to the probable effect demand from thi:
will have he
well known that the lines in urgent need o.
enormous quantities of material for repairs and rail.
road demand will doubtless be strong factor il
the lumber market for several years.
| Activity in the North Carolina pine market is still
held in leash by unfavorable weather in both the
producing and consuming territories. In the east
especially, construction work has received a decided
setback from this cause and demand for building
material has suffered corresponding decline Re-
taiers of this section. while willing enough to buy
lumber for business already in sight, are showing
marked degree of hesitation with respect to future
orders. As many OF the mills doubtless have adopt
ed the policy of accepting orders at open prices only
the retailers naturally reluctant to assume un.
determined future obligations Both orders anc
production during the past week suffered curtaiI
ment of approximately fifty per cent while the de-
cline in shipments was even greater. Though thi:
development is of temporary nature and one tt
be regarded with the advent of favorable weather
serves to give prolonged life to the unsatisfactory
state OF the market. Prices of a few items made
slight advance during this period but practically al
of the changes were of immaterial nature. AS
has been the case for several months, demand still
centers upon the better grades. though calls for box
lumber are sufficient to prevent any accumulation
of this material The market is still characterized
by transactions involving only small quantities OF
lumber. practically of the mills able to
make delivery on heavy orders.
The scarcity of stocks constitutes a formidable
barrier to any expansion of business in hardwood
circles. and. until weather conditions make possible
heavier production the of business transact
ed in this market will not be impressive. For such
lumber as is available for market, there is ex-
cess of buyers, who are underterred by existing
price levels. With the exception of the Eastern
territory, production continues at a low ebb with
no prospect of relief in sight. In the SOUTH the
number Of mills compelled to close down because
of an inadequate log supply is gradually Increasing
and it is extremely likely that the list will be ma
terially augmented before spring arrives. While the
scarcity of lumber is admittedly becoming more
acute, prices temporarily at least, have abandoned
their upward tendency Such changes as occurred
during the week were for the most part adjustments
designed to give greater degree Of uniformity to
the list. However because of the unprecedented
winter demand and of the unusually low production
during this season. the probable trend Of values for
the next few months is uncertain. Certainly the
prospect for continued excess of demand over sup
ply forbids any early decline in values. The car
shortage is still giving trouble in hardwood circles
and. in the south, the situation has been rendered
especially aggravtng by the action OF the railroad
administration in transferring badlyneeded cars to
ether sections.
WI