Core Viewpoint - The main sentiment in the market for log futures is cautious, with expectations of limited price movement in the short term due to various supply and demand factors [1]. Group 1: Market Performance - On November 5, log futures experienced weak fluctuations, with the main contract dropping to a low of 775.0 yuan and closing at 777.0 yuan, reflecting a decline of 0.19% [1]. - The overall market sentiment indicates a lack of driving forces for price increases, leading to a recommendation for cautious trading strategies [1]. Group 2: Supply and Demand Analysis - Newhu Futures highlights that the inventory pressure for softwood logs is higher than the same period last year, particularly at Shandong ports, while Jiangsu ports show lower inventory levels compared to recent years [1]. - The external market prices remain stable but high, while domestic demand is weak, leading to a cautious outlook on potential price increases [1]. - Green DHH Futures notes that the supply side is under pressure from high external prices, while domestic prices remain weak, suggesting that short-term import volumes are unlikely to rise significantly [1]. Group 3: Inventory and Pricing Dynamics - The total inventory of logs is at a low level, which provides some support for prices, despite the recent increase in log arrivals at ports [1]. - The average daily shipment volume has been above the levels seen since September, indicating stable sales conditions [1]. - Cost factors such as the exchange rates of the US dollar against the Chinese yuan and New Zealand dollar, along with shipping costs, have increased, but stable fuel prices at the Tauranga port help balance importers' pricing [1].