My walnut thread

nativewolf · April 23, 2018, 09:56:42 PM

So may wonder about leaving in log form vs bucking. We hope by leaving in long tree form we'll get more as the buyer can mark their own cuts.

SW Oh Logger · April 23, 2018, 10:03:48 PM

In most cases we always do that--many buyers actually will prefer that they are left like that. We've even taken them in on a non-bid ,haul to the mill basis in tree length first cut up to 25 ft. long. Your walnut looks great! Hows the sap and growth rings, good color?

nativewolf · April 23, 2018, 10:14:21 PM

Just cut so give them a few days to color up, VA walnut has a decent color. Sap rings are not too large. Bird peek in a tree or two but not bad. The fusiform cancers are the biggest issues, some are really nice and then a canker 20' up a perfect bole. Makes you want to cry. Hope to get to 100mbf on this auction.

nativewolf · April 30, 2018, 09:03:17 PM

Some grim news today. Friday the Chinese govt started enforcing a ban on logs with bark unless fumigated. Before it was not enforced. Thousands of containers at sea full of logs. Really throws a wrench into walnut sales for me.

Vietnam & Germany should remain good markets at least. We'll see what happens.

I should mention that we just started a week inspection for a sealed bid that ends this Friday, that notice was sent out Friday and today 3 hot buyers called to give regrets that they are not allowed to buy until they figure out what to do. Huge amount of money at stake for me, thought I was going to leave the day job. :(

Hans1 · May 02, 2018, 03:20:51 PM

Please keep us posted on any devopments with the exportation problems. We had just finished a sale and were going to wait til the late summer to cut more. Good luck with everything.

TKehl · May 03, 2018, 08:35:45 AM

X2

I don't think the fumigation requirement will really slow things down long term. But temporary turmoil is sure possible. The timing sure sucks for you. :(

nativewolf · May 03, 2018, 09:17:40 AM

Yeah, it will be sorted out quickly ie in the next couple of months. Frankly the Chinese have no other sources for this material so they are buying. This is why China imposed tarrifs on Ag commodities...they can buy wheat and corn elsewhere. Good walnut and oak is a US game right now. Europe a net importer for the last 100 years, Siberia (east siberia that is like Michigan/ Ontario ) was raped in the last 25 years; Japan..raped itself; Korea, Japan raped it and Korean war burned off the rest. No good sources of temperate hardwoods outside the US.

Short term it disrupts my cash flow. Veneer buyers so far have been very very bullish only problem is there have only been 3 instead of 6 and only 2 more coming.

The biggest hit is going to be the small sawlog stuff I was getting $1.5 or more for small sawlogs and now we'll get $.90 or so. That doesn't leave much if anything after timber costs and harvest costs.

nativewolf · May 04, 2018, 06:21:30 PM

Ok, well first auction done. Results were not great as hoped. Butt logs averaged $4/bdft, frankly I think if China had not done this sudden enforcement we'd have been closer to $5 or $6. I canceled the sale of the tops, I'll hold them for a month and wait for the Chinese ports to sort out. About 5.4MBF of seconds and thirds from 8.5MBF of butt logs. Anyhow, thought people might be interested. The next set of logs is cut and I'm not sure if we'll cut more this May or wait til September. A lot is going to depend upon what we hear. The winning bidder was from Ohio, FYI. 11 teams had registered to bid and I was turning people away. After the announcement we ended up with 4 bids. So, some of the froth went out.

This auction was for about 1/4 of the total forest walnut stems.

mike_belben · May 04, 2018, 09:55:44 PM

Why turning people away?

nativewolf · May 05, 2018, 08:17:39 AM

Well I have to be there when they scale, it takes them 2-3 hours depending on what they were bidding for (butts or everything). They are often late..so say 4 hours for each one. That's 40 hours of sitting on my bottom. No cell, can't call new clients, etc. Thought 10 diverse buyers was plenty to get pricing right.

mike_belben · May 05, 2018, 08:55:07 AM

Gotcha.

blendinbiz · July 11, 2018, 02:08:59 AM

Fumigation, how long will it take and for how much per ctn?
I heard lots of logs were rejected at the port bcz no fumigation certificate

nativewolf · July 11, 2018, 07:12:02 AM

Yes it really screwed things up for me and two of our clients, right in midst of harvest. It is slowly working itself out, the port of virginia is peeling and fumigating now but $$$.

We sent a load up to Canada yesterday, 2nd, 3rd, 4th logs. Curious to see what happens from that, they grade on international scale.

blendinbiz · July 17, 2018, 12:00:15 PM

international scale is good for you.

nativewolf · July 17, 2018, 01:07:41 PM

International was good on those logs. Averaged almost $2/bdft on international scale. So, more scale and the price was fine for those logs. Probably added 1k or more to the load and they paid the trucking. The butt logs are scaling better on doyle to be honest.

Hans1 · February 23, 2019, 10:23:39 PM

Thought I would bring back this thread to see about any current sales and how the prices are doing.

nativewolf · February 24, 2019, 07:43:34 AM

Pricing on good logs was good, I've been waiting on some large new clients till I have new equipment. Just too wet to do much. 40-50k feet went out this winter. However, it is a milkshake on the skid trails so I shut down.