In regards to softwood lumber, grades are usually 1 through 4, with 1 being the best. Grade 1 Common softwood is characterized by clear wood with very small, tight knots. Pallets and packaging are typically made using Grades 2 through 4. The lower grades of softwood have larger and more frequent knots.
Knowing your application and consulting with a pallet and packaging professional is the best start in determining the proper grade of lumber.
Post by: Rich Reiher, Vice President