Lumber falls 21% in 8-day losing streak, but analysts see a bottom forming for the key building commodity

By Matthew Fox
Market Insider
February 14, 2023
Category: Finance & Economics
Region: Canada, United States

Lumber prices are on the decline again as questions continue to linger about the current state of the housing market. Lumber futures fell 3% to $402 per thousand board feet on Tuesday, an eight-day losing streak that has erased 21% off of futures’ pricing.  The 23% price decline in February is an about-face from its strength seen in January, in which the commodity surged 37%. But data Raymond James sees is giving it confidence that a bottom is in for lumber prices. …”We do think a strong case has been made that cash lumber prices will continue to rebalance toward British Columbia’s marginal production costs (which we now estimate ~$500/mbf USD), and likely higher still in 2024,” Horne said. …Raymond James projected that lumber futures could rise to $500 per thousand board feet in the second half of the year, and then rise to $525 in 2024. 

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