ough would be the best word to describe the lumber business right now.  There was an initial spurt of buying at the beginning of the year in January which has tapered off since.  All indicators are showing another tough year for 2010.  Cedar clears are okay but, that only accounts for 20% of a cedar cut.  Merch items are very slow and are being discounted by the majors.  Hemlock is worse as not only are lumber prices low, it is also sold in U.S. dollars with a very unfavourable exchange rate.

We have tried many different things to keep operating, but with the current markets and exchange rates we have run out of options.  The only thing left is to lower our costs.

Until something changes, CML will be operating on a custom cut basis only and not putting any more of our own inventory on the ground.

Currently at CML we have about one more week of the Probyn cedar cut and then up to two weeks of hemlock for Western and Trapa.

I am sure if we all work together we can find a solution to our problems and keep CML operating.

Until Next Month Play Safe and Work Safe.