redoak at forestmeister.com
Sat Aug 29 14:38:48 EST 1998
Larry Caldwell wrote:
> In article <35E7CA46.46FA0164 at forestmeister.com>,
> redoak at forestmeister.com says...
> > On the 1 big sale I had last winter, the buyer had it all figured out
> > ahead of time- where each log was going- and he had contracts signed for
> > each log- to protect himself- passing the problem of the volatility of
> > the market to those guys.
> So is this all insider trading? I've never heard of anything like the
> Chicago Board of Trade for wood commodities. Or are pulp futures traded
> on the Chicago big board just like wheat and hog bellies?
> Some of the big pulp suppliers are big enough to trade directly on the
> board, if they wanted to. Selling forward contracts and futures is a
> pretty traditional way of hedging a volatile market.
Well, here there seldom is a market for pulp, I only mentioned that as a
long shot possibility. But the marketing game is very complicated and I
have little knowledge of it. I just put the timber up for sale and
whoever has the most money gets it. Some guys try to make log marketing
into their speciality, but it's too risky for me. I just prefer the
safe, secure, high paying consulting work. <G>
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