What Dan said. Alot of uncertainty, but no real price drops to write home about. Frankly, with the price of oil, the "Rona, and shutdowns, noone knows what to do. Interesting times
Any of the big box stores have anything left at this point? Our local BJs is $1.75 for 87 according to Gasbuddy. Geez. Cheaper than a few stations I follow in MA and VT.
Well, if I'm a supplier and I gots me lots of pellets... and I run the risk of eating them... I'd thinking offering them up for half price makes a lot of sense (to me!).
That is not what is actually happening right now... Believe it or not, production is down for lack of materials.. A lot of these mills use cutoffs/waste from lumber producers. Right now lumber sales are way down. Some brands use harvested trees. Loggers are not out there cutting, as usual. Couple that with overseas orders for pellets, and there are actually not as much hanging around as you may think. Also, there are so many people (in this area, anyway) that are not working and do not know when their next paycheck will come.. if ever.. So those orders are on hold. This is a tough time for everyone.. Especially smaller local dealers. Do you try to stock up now? Not knowing what it will be like in the fall? Can you afford to wait until later, and face not being able to get any? BTDT.. Dan
For the first time, the saying 'hang in there' may actually literally mean hang in there. I wish you all well and hope you can ride through this. It's been hard on everyone.
So I just spoke to the manager at Coastal Ranch and Farm here in my local area. She says that she believes for us that there won't be much change in pricing on pellets when all this covid stuff passes through. She also said they are short on supplies too but for the reasons she said they stopped producing in mid February but there's been a cold snap here that's extended longer than normal. She went on to say that Lignetics and Bear Mountain have stopped their other production lines and reverted back to producing wood burning pellets to fill back orders.
I don't know...the old axiom of "build it and they will come" doesn't really apply here. Does a retailer (and I have to use retailer here, as thats where most of us get our pellets) use alot of operating capital to buy product that there is a greater chance than ever of not selling due to unemployment (?), people still sick (?), the late summer/fall price of oil (?), and the supply of wood pellets from producers (?). That's quite alot of unknowns. When a + b = c, and you don't know ANY of the variables, how do you react? I do know current spring pricing is nothing to write home about, so, theres that too. What do you pellet folks plan on doing? Never mind, Ill make a poll!
They don't expire, So sitting on them(if storage allows) and selling next season is also an option. Most pellet house's near me site on them.
I paid $1.48 for gas, milldale ct yesterday !!! Mobile gas to, not the cheap stuff either. And I'm sitting on a mixed few tons. But stove is currently running, low 40's and wind makes a cold house.
OMG ! Crude is at $11 a barrel today, and a gas station 2 towns away is at $1.19. I feel bad for American energy. Mass collapse of American oil is imminent.
