Wood pellets commody?

maverickxxx · #1 02/19/12, 02:56 PM

What are people's thoughts on wood pellets? Do u think it is or will be traded like gas an oil etc... So they can maximize profits an make it just as exsprnsive as heating with gas or oil etc.... I know someone who wants to get one n I said the pellets will prolly end up being just as expensive once enough people have them. I personally use wood for me it's way cheaper cause I do the wrk. An u can just pick it up anywhere

Bearfootfarm · #2 02/19/12, 06:48 PM

Pellet stoves are a fad that will soon pass when enough people realize they are useless in a power outage

Danaus29 · #3 02/19/12, 08:26 PM

Quote:

Originally Posted by Bearfootfarm

Pellet stoves are a fad that will soon pass when enough people realize they are useless in a power outage

That guy who made the grate for burning wood pellets in a non-electric stove would be a millionaire. I'm thinking about ordering one of those.

poppy · #4 02/19/12, 08:26 PM

Quote:

Originally Posted by Bearfootfarm

Pellet stoves are a fad that will soon pass when enough people realize they are useless in a power outage

True, but they sure do a good job. I'm amazed at the heat you can get from 1 bag of pellets. Have you seen the wood pellet grills they have out? Too pricey for me but they look cool.

Raeven · #5 02/19/12, 09:17 PM

Quote:

Originally Posted by maverickxxx

What are people's thoughts on wood pellets? Do u think it is or will be traded like gas an oil etc... So they can maximize profits an make it just as exsprnsive as heating with gas or oil etc.... I know someone who wants to get one n I said the pellets will prolly end up being just as expensive once enough people have them. I personally use wood for me it's way cheaper cause I do the wrk. An u can just pick it up anywhere

maverickxxx, I agree with you. I think they're ridiculous. Not only are they burned in an electric environment, but they require a manufacturing process.

Give me wood.

And don't go there.

Bearfootfarm · #6 02/20/12, 03:02 AM

Quote:

Have you seen the wood pellet grills they have out? Too pricey for me but they look cool.

LOL

I still cook on a smoker that's got to be getting close to 30 years old.

I just can't see paying for wood pellets when I've heard of so many having trouble with the stoves.

I did the wood heat thing in the 70's and 80's, but I like my Propane now

maverickxxx · #7 02/20/12, 06:50 AM

I m not a fan cause of electric an being manufactured not something I could even do easily. U can't even get them at convent store. If u run out your out. All other sources of fuel u can get easy if u run out 11 at night on a Sunday. But any way do u think they will be traded in the commodities like gas an oil. Where they produce only enough for demand at the time to keep prices higher in line with other heating sources

unregistered168043 · #8 02/20/12, 07:03 AM

We sell wood pellets at my place of employment. The price has been steadily going up since I got there ( couple of years ). I don't know if they will be traded like commodities, if they do it will be the first step towards outlawing wood stoves. If the pellets were to become a commodity, their biggest competition would be wood stoves. It will not be long until they lobby and support bills to outlaw woodstoves on the pretext of 'clean air' interests.

That being said I think the likelihood of wood pellets becoming a commodity are remote, for the time being.

Darren · #9 02/20/12, 08:36 AM

There was an article not too long ago about a pellet manufacturer that has been in business quite a few years. The local pellet plants make use of the sawdust that would probably go to waste. Here sawdust either goes for pellets or for Kingsford's charcoal briquets.

The pellet plants went through a tough period. Locally the plant didn't expand. They found a way to economize on the process to save money and hang on. I think they closed the plant in the West.

The electronics associated with the pellet stoves have been a problem for some. I think like anything else, a bunch jumped into the business creating an over supply. Some dropped out leaving owners stuck with an expensive piece of junk when they couldn't get parts. That's put a lot of negative experiences out there. Then people tried burning corn right before the government set off the ethanol escapade blowing up corn prices.

As a commodity, pellets have to compete with a lot of other sources of energy that can vary as far as price. Falling natural gas prices are an example. It's hard to tell how it will end. As far as being a commodity that's traded as a commodity, I think the market is too small.