As soon as the wood is dry to the touch and will absorb stain you can apply the first coat semi-transparent oil stain. The wood will continue to lose moisture this year but the stain will prevent the moisture loss from being so rapid, and can prevent some cracking that can accompany fast drying. You will probably find that you need a second coat in late summer or early next year. Stain will not chip or peel when applied to incompletely dried wood and will preserve it against unwanted color shifts and cracks.
Caulking will be needed in late summer or fall. The will will continue to shrink until moisture is at equilibrium so gaps will continue to open for a while. I never dealt with Hemlock, but this is how I worked with wet Cedar lap siding and it worked just fine.
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