Question-and-Answer Session
Operator
Thank you, sir. (Operator’s Instructions) The first question comes from the line of Anna Torma with Soleil. Please proceed.
Anna Torma - Soleil - Torma Research
Good morning, Ray and Ken. Ray, could you provide a bit of additional color on saw timber pricing? Do you think prices are sort of bouncing along the bottom now or are we going to see further sawmill closures pushing saw log pricing down to yet another new low?
Ray Dillon
As you know, Anna, each one of these sawmills are in a given wood basket and that’s really a micro market. So, in some saw timber markets, depending upon the number of manufacturing facilities that continue to operate will affect saw timber prices.
In those where the supply and demand of saw timber from the wood basket is balanced, I think that we may have found the bottom. But in areas where facilities continue to shut down, you know you could continue to see more saw timber on the market than there is consumption for it.
Anna Torma - Soleil - Torma Research
Great, thanks. And you could also, if i could ask a second question just to comment on whether you’re seeing any downward pressure beginning to emerge on Timberland demand and pricing in the markets that you are looking at?
Ray Dillon
I guess from our hardwood bottom land sales, we continue to see a tremendous amount of interest, I would characterize that as mostly local market conditions as people look to own land that they choose to enjoy from a recreational standpoint.
As it relates to Timberland, we still see the Timberland market’s very competitive in those areas that we’re looking and that we acquire from time to time.
Anna Torma - Soleil - Torma Research
That’s great, thanks Ray.
Operator
The next question comes from the line of Burt Winston with Kedo’s Capital Management. Please proceed.
Burt Winston - Kedo’s Capital Management
Hi guys, morning. You reduced your volume in the mills by about 20% you mentioned. Do you think that’s adequate to keep pricing approximately where it was in 3Q?
Ray Dillon
That’s essentially what we see to balance our output with our customer’s demand at this time, Burt. As I said, we’ll make further either reductions or increases, depending upon what those market conditions did pay but for the moment, we think that’s sufficient.
Burt Winston - Kedo’s Capital Management
- To read the full transcript on Seeking Alpha, click here »
