log buying question

[Quebecnewf]

This is a kind of vague question but here goes

How much in Canadian funds would you pay per ft based on the 1/4 Internationl Log rule for spruce anf fir logs of small to med size delivered to your mill.

I am paying 35 cents a foot but I have a small distance to haul them. If they were delivered I would go to 37 or 38 cents

Any thoughts ???????????

Quebecnewf

[highpockets]

Just follow the loggers around and steal their at night.  Just kidding.

[Tillaway]

I hate to sound bad but you set the price.  What are the logs worth to you?  What is the log quality?  How much over-run do you normally have?  What is your market for the lumber? What is the guy down the road paying?  Do you have orders to fill?

If no one will deliver logs at your price then you are obviuosly too low and if your phone won't stop ringing with offers then you are too high. (one mill near here was a bit too high and plugged their log yard before the realized they were paying about $125 mbf over everyone else.)

[Corley5]

Just follow the loggers around and steal their at night. Just kidding.

;D  I was into the DNR office the other day to ask if they knew of any seasoned logs on any timber sales.  There was one job that had some seasoned red maple, white birch and some beech but I was advised that the producer was a bit difficult to deal with ;).  He'd tell you one thing and do another : His crew started the job almost a year ago and the aforementioned logs were left when they pulled out to another job that had to be done right away.  When they got back and hauled a load to the mill it was rejected because it was too dry.  Since then the wood has remained stacked and he's had many inquiries from people wanting to buy it but he won't commit.  The forester I was talking to had been out to the job a few days ago and noticed one pile gone and another had wood missing.  When he said something about them getting rid of it he got a big laugh from the crew.  People got tired of being turned down when they offered to buy it so now they were coming in at night and stealing it : ;) ;D  Grandpa once gave a radiator out a Chevy truck to guy as long as the fella pulled it.  He knew the guy didn't have any money to buy it.  When the guy thanked him Grandpa told him "I rather give it to you than have you come back after dark and steal it".  Knowing the individual that's probably what would have happened too :

[Ron Wenrich]

Log price = lumber value less mfg costs less profit. 

That equation works for all mills and all situations.  Log prices too high, then profit goes down or goes negative, but you have plenty of logs.  Log prices too low, you have no logs.

If you don't know your lumber value or your mfg costs, then you're kinda searching in the dark.

[Tim]

Typically the mills in Quebec are buying on the Roy Rule Quebecnewf. Maibec is paying $400 / Mfbm on their yard in Shawville for SPF. There are several trucking companies that are brokering SPF to Riopel, the producers are getting stiffed by the brokers at $260 / mfbm out of this area.