THE CALIFOR}-IIA W T BTACK LUMBE R ME RCHANT

How Lumber Looks

Seattle, Washington, August 7.-The weekly average of West Coast lumber production in July (4 weeks) was 119,191,000 board f'eet, or 6O.5 per cent of the weekly average f.or l92Gl9D, the industry's years of highest capacity realization. Orders averaged I%,769,W b.f.; shipments, I21,7O7,W. Weekly averages for June were: production, 130,433,000 b.f. (66.2 per cent of the h.c.r. index) I orders, I 42,886,000 ; shipments, I 33,81 1,000.

First 30 weeks of 1939, cumulative production, 3,533,415,000 b.f.; same period, 1938,2,734,759,W; 1937, 4,024,483,000.

Orders for 30 weeks of 1939 break down as follows: rail, 1,523,780,W b.f.; domestic cargo, 1,426,572,000; export, 262,277,W ; local, 551,622,ffi0.

The industry's unfilled order file stood at 486,988,000 b.f. at the end of July; gross stocks, at 946,000,000.

Positive influences on the market position of West Coast lumber in July were led by the settlement of the California strike of lumber yard workers. The strike had stopped lumber movements from Los Angeles yards and held up a large part of building in the region. The settlement has released the flow of West Coast lumber in its largest single market. July brought more inquiries to the industry from the United Kingdom. These are related to defense requirements for barracks construction, etc. This special demand is temporarily exceeding the capacity of Canadian mills. The excess demand is yet small in volume, but it is a postive factor. Another seasonal influence is in orders from railroads for grain doors. This is an annual event for West Coast lumber.

Negative influences, again reflected in the lag of production behind orders, were in the continued lopsided character of the market. Cutting business remained on a low level. U. K. demand was for small sizes, to be used in barracks and similiar construction. There was no other increase in exports. As in previous months, home building, particularly in the low-cost field, was the major support of the market for West Coast'lumber. Most West Coast mills, cannot utilize their logs economically in supplying this single market, while the demand for large sizes and the lower grades is low.

The general situation of West Coast lumber at the end of July represented a continuance of June trends. The prospects for farm trade are still doubtful, resting on solution of the old equation of apparently large crops vs' apparently low prices. The industry anticipates the same volume of farm demand as that of last year.

The lumber industry during the week ended July 22 stood at 69 per cent of the seasonal weekly average of production in I9D; 73 pet cent of the seasonal weekly average of shipments in I9D, and 81 per cent of the seasonal rveekly average of new business in l9D, according to reports to the National Lumber Manufacturers Association from regional associations covering the operations of important softwood and hardwood mills. Reported new orders in the week ended JuJy 22 were 30 per cent in excess of the seasonal weekly average of 1938 orders.

During the week ended luly 22, 514 mills produced 246,938,ffi feet of softwoods and hardrvoods combined; shipped 242,278,W feet; booked orders ol253,673,W feet. Revised figures for the preceding week were mills, 524; production 240,I97,W feet; shipments 228,572,000 feet; orders 239,861,000 feet.

Lumber orders reported for the week ended July 22, by 430 softwood mills totaled 243,963,ffi f'eet; or 2 per cent above the production of the same mills. Shipments as reported for the same week wete 233,373,000 feet, or 3 per cent below production. Production was 240,090,000 feet' Reports from 100 hardwood mills give new business as g,7lO,W feet, or 42 per cent above production. Shipments as reported for the same week were 8,905,000 feet, or 3O per cent above production. Production was 6,848,0@ feet.

The Western ust 5, 112 mills feet; shipments Orders o,n hand feet.

The Southern ust 5, 138 mills feet; shipments Orders on hand feet.

Pine Association for the week ended Augreporting, gave production as 79p14,ffi0 74,893W feet, and orders 80,650,000 feet' at the end of the week totaled 220,7M,W

Pine Association for the week ended Augreporting, gave production as 33,632,000 36,782,000 feet, and orders 39,198,000 feet. at the end of the week totaled 80,932,000