Lumber futures fell to $550 per thousand board feet in September, the lowest in nearly four months, amid softer demand for new home building and ample supply. US building permits fell 2.2% in July to a seasonally adjusted annualized rate of 1.362 million, the lowest since June 2020. Although the market anticipates a potential rate cut in September, rates are expected to remain restrictive, and high inflation expectations are expected to support long-maturity yields, which dictate mortgage costs. Seasonal slowdown in construction is set to magnify the drop in housing construction. On the supply side, Canadian mills continue to push large volumes of surplus lumber into the US market, far exceeding actual demand and creating an oversupply situation. Additionally, ongoing tariff issues between the US and Canada add further uncertainty, as potential changes in trade policy could significantly affect US lumber prices.›