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…]
Darren Satsky
Darren Satsky is owner of Lumber Technology Corp., a wholesale lumber firm. He has 25 years experience specializing in high-quality lumber to the shed builder market. He can be contacted via email at darren@lumbertechnology.com.
Staying Ahead of the Market in 2019
The lumber market’s historic volatility in 2018 seems to have found some stability at year end. Prices adjusted only slightly throughout the period. Strong fundamentals supported business activity but were tempered by adequate supply of product and transportation. In this column, I’ll look at what’s been affecting the market and will[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…]
Lumber Demand Remains Strong
The September lumber futures market, a contract of SPF 2×4 #2 and better, found temporary support after months of leading the cash market lower. Sparked by concerns of wildfires in British Columbia and interior provinces, buyers replenished inventories to fulfill pressing needs. Prices rebounded and mills filled orders filed through[Read More…]
High Prices Likely Here to Stay
The lumber market has continued to make new highs, and the industry has come to the realization that high prices are here to stay. With little evidence that dealers and distributors have built a 90-day inventory, the capacity for future gains looks inevitable. Why are lumber prices making history?[Read More…]
Lumber Prices Making History
Lumber prices are making history. Why? Let’s take a look at the reasons and what the future holds. As we offered in previous columns, improving macro-economic forces, supply disruptions, unexpected natural disasters, and unresolved trade policy with Canadian tariffs added to market volatility. With certainty in regard to lumber tariffs[Read More…]
Early Spring Buying Opportunity?
Let’s take a look at why this may be an early spring buying opportunity in the lumber market. As we offered in the previous column, improving macro-economic forces, supply disruptions, unexpected natural disasters, and unresolved trade policy, vis-a-vi Canadian tariffs, combined to make market swings more volatile. What if we[Read More…]
Lumber Prices Setting Records
Yes, the lumber market is setting records … but why is it setting records? Improving macro-economic forces, supply disruptions, unexpected natural disasters, and unresolved trade policy (Canadian tariffs) are combining to make market swings more volatile. Let’s take a deeper look at why lumber prices are elevated and what you[Read More…]
Fast Economic Growth, Strong Outlook, Lower Duties
It’s a see-saw time when it comes to the lumber market. We have a growing economy. We’re still waiting for a decision on the U.S.-Canada lumber situation. And we have natural disasters, like Hurricane Harvey and the Western wildfires. All of these impact the lumber market, so let’s take a[Read More…]
Lumber Prices Trend Lower
In spite of a drop in durable goods orders in May, factory demand has strengthened this year. Durable goods orders for the first five months this year has increased 2.8 percent. Why does this matter? Factory orders or business investment in new equipment indicates that the economy is growing. This[Read More…]
