Since my last column, most cash lumber prices fell hard. Lumber futures for July delivery dropped 40 percent from record highs reached in early May.
Darren Satsky
Lumber and the COVID-19 Effect
Turmoil and volatility in lumber prices have resulted from the coronavirus/COVID-19 pandemic. Both lumber demand and supply reversed course from a very positive start to the year.
Market Encouraged by Current Supply/Demand Environment
2020 continued its strong start with builder confidence at a decade’s-high level. Building on strong mill order files and historically favorable lumber prices in Southern Pine and SPF studs, the market has a much better outlook than a year ago.
Lumber Prices Above Average
2020 is off to a strong start with builder confidence at a decade’s-high level. Building on strong mill order files and historically favorable lumber prices in Southern Pine and studs, the market has a much better outlook than a year ago. January and March lumber futures trade at a premium[Read More…]
Staying Ahead of the Market
A robust lumber market this fall season combined with lower production from Western sawmills elevated price levels and extended ship times. Buyers’ persistent low inventories coincided with strong demand for many lumber products. The low inventory scenario continues to have the potential for adding volatility to the lumber market this[Read More…]
Staying Ahead of the Lumber Market
Lumber inventories at the wholesale, retail, and manufacturing levels remained flat during the July-August period. Buyers continued their pattern of buying just what they need and expected prompt deliveries. This low inventory scenario has the potential for adding volatility to the lumber market going into the third quarter of this[Read More…]
Staying Ahead of the Market in 2019
A look back at lumber prices in June reminded all participants of the volatility seen last year. In spite of recent gains, prices ended the month way below last year’s levels. The current volatility was driven by production curtailments and the convergence of better weather and seasonal demand. The supply[Read More…]
Staying Ahead of the Market in 2019
Lumber prices continued to adjust throughout the March-April period, and the lumber market direction was mostly downward with Western SPF 2 by 4 dimension falling hardest. The supply-side factors that supported higher prices—log availability, production curtailments, and rail car arrivals—have abated. On the demand side, weaker housing construction data, labor[Read More…]
Staying Ahead of the Market in 2019
The lumber market’s historic volatility last year has reappeared at the beginning of the year, with some prices increasing dramatically through the first two months of 2019. Supply-side factors supported higher prices, as mill curtailments, log supplies, and rail car availability contributed to the winter run, while winter weather[Read More…]
Great Investment Time
The lumber market adjusted to supply-and-demand factors throughout the most recent two-month period. Strong fundamentals supported robust business activity but were not enough to stop a slide in many lumber prices. Some prices represented an opportunity for shed builders to buy at levels not seen in years. ECONOMIC BACKGROUND The[Read More…]
