We wanted to quickly send out a note to any traders that Cherry pricing stability has been downgraded from “Stable” to “Somewhat Stable”. This is due to a recent shift is market forces due to the rising Market Capitalization.
Prior to June 15, Cherry was stable at around 245pp with nearly all trading done at this price point. However, starting on June 20th, the prices started fluctuating due to a significant sell-off and subsequently an increase in unmet demand for the material. On July 2nd, a steady drop in material prices triggered the downgrade in stability. At present, Cherry has a buy point of 160pp and a maximum sell point of 300pp. This larger variance between buy/sell prices is the root cause of the instability, since it is significantly wider than the 245pp point from June.
The Company’s rating of “Somewhat Stable” means we will start monitoring the material to see if it will return to it’s consistent price point or if there will be a reduction in the overall value. Right now, it’s still showing a similar trend to the rest of the wood market, but this could change quickly. One thing we are pretty certain won’t happen is for Cherry price to go up.